Current reimbursement landscape for in-vitro diagnostics as a part of hospital or outpatient care
In most European countries, IVD tests performed during inpatient stays are included in the payment for hospital admission (DRG-based payment or global budget). Laboratories are funded using a global budget principle without a specific reimbursement framework. In general, laboratories introduce tests that are necessary from the clinical perspective. The fee-for-service model for IVD during hospital admission is used only in Belgium and in private for-profit hospitals in France.
Many countries have specific reimbursement frameworks for IVD tests provided as a part of outpatient specialist care, most commonly using a fee-for-service payment model. In most countries, IVD tests are a part of the national list for reimbursable outpatient specialist services (e.g., EBM catalog in Germany, LEA catalog in Italy). In other countries, there are specific national nomenclatures intended for IVD tests (Nomenclature of Medical Biology Procedures (NABM) or Norwegian Laboratory Code (NLK) system).
The name of codes in the national lists used for reimbursement of IVD tests can include a detailed description of an analyte and/or the test method (for example, EBM code 32150 “Immunological detection of Troponin I and/or Troponin T on a prefabricated reagent carrier in the case of the acute coronary syndrome (ACS), if necessary, including quantitative evaluation using apparatus”) or provide a generic high-level description of a test method making the code applicable for multiple tests (for example, code G1.01 “Mutational analysis of disease that requires only one gene for diagnosis” in Italian LEA catalog).
The national nomenclatures typically define the tariffs (LEA catalog in Italy) or point values (NABM in France or EBM catalog in Germany) and conditions for reimbursement for individual tests. Additional regulation can determine the monetary caps for the use of certain tests (Germany).
In some countries, there is no reimbursement system for in-vitro diagnostic tests; their cost is included in the basic payment mechanism for medical care (e.g., the NHS Payment Scheme in England or the global hospital budget in Spain).
The framework (evidence requirements, timelines) for the creation of novel IVD reimbursement codes in the national lists varies between countries; however, in most countries, it can be triggered by manufacturers.
Policy considerations
Approval by payers or national decision-makers is required for the inclusion of a novel expensive test in the national lists of reimbursable services in many countries. For example, in England, expensive genomic tests used in rare diseases and oncology are covered in the National Genomic Test Directory by NHS England; in Norway, innovative IVD tests can obtain coverage decisions by payers within the “New Methods” framework; in Spain, genomic tests guaranteed for the population are listed in the Common Catalog of Genetic and Genomic Tests of the NHS.
Role of HTA
Health Technology Assessment is an important factor influencing the adoption of IVD tests, apart from reimbursement and acceptance by payers / national decision-makers. In most countries, HTA is incorporated into reimbursement decision-making (INAMI/RIZIV in Belgium, HAS in France, New Methods” framework in Norway). However, in some countries, there are stand-alone HTA organizations whose recommendations can support the adoption of the new IVD tests by healthcare providers (NICE in England or AGENAS in Italy)
Role of innovation funding
Innovative payment schemes play an important role in market access for IVD tests in Europe: around 52% of the innovative payment schemes can cover in-vitro diagnostics (Medtech Funding Mandate in England; Government-co-sponsored studies according to the §137e of the German Social Code Book V in Germany; small-scale experiments for introduction of innovations in the Netherlands). Some of the innovative schemes allow for direct application by the industry (Innovative Devices Access Pathway (IDAP) in England, Article 51 of the Social Security Financing Act in France).
France offers a unique and unparalleled opportunity to gain early access to the market through the development of clinical and economic evidence using seven Innovative Payment Schemes, including the List of innovative medical biology procedures outside the Nomenclature (LAHN) – the key innovative scheme for IVD tests in France. Funding via the LAHN means an additional budget for laboratories that comes from the research and innovation (MERRI) budget distributed by the Ministry of Health and Access to Care.
Future challenges
Future challenges in the market access landscape for IVD tests include adjusting existing payment models to accommodate novel tests, creating new reimbursement or funding frameworks for expensive tests, and developing a reimbursement framework for point-of-care tests.
How can MTRC help?
Development of reimbursement analysis (procedure coding, payment mechanism, reimbursement tariffs, and policy considerations)
Development of reimbursement strategy
Development of the value dossier
Performing evidence gap analysis for novel technologies
Development of reimbursement and HTA submission dossiers
Adaptation of the global health economic model to EU settings
MTRC has experience with more than 85 projects related to IVD tests in Europe
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