Mar 5, 2015, 11:30
by
Michael Croft
By Clinical
Informatics News Staff
March 5, 2015 | The
Association for Molecular Pathology (AMP), the main organization representing
the interests of laboratory professionals performing molecular diagnostics
in the U.S., has published a series of models estimating the cost and value of
various testing procedures that involve broad next-generation sequencing of DNA
samples. These types of tests, which AMP refers to as Genomic Sequencing
Procedures (GSPs), are increasingly used to test multiple genes that may be
involved in a disease case at once. Alternative testing methods, like polymerase
chain reaction, cytogenetic assays, and narrow sequencing panels, can only test for one or a few specific genetic
variants at a time, leading to diagnostic odysseys where possible causes of
a disorder are ruled out one by one.
AMP is trying to quantify the costs and benefits of GSPs in
the midst of an ongoing national debate on how payers should reimburse labs for
performing these tests. The American Medical Association has been embarking on
a mass revision of its CPT codes for genetic assays, which the government and
other insurers use during reimbursement. With advice from AMP, new codes for
GSPs began to be implemented this January; however, the Centers for Medicare
& Medicaid Services (CMS) will not set national payment rates for these
codes until January 2016. In the meantime, CMS has been relying on a gap-fill
process by which individual contractors negotiate payment rates, resulting in a
patchwork system where many labs feel shortchanged or struggle to be reimbursed
in a timely fashion.
The cost-benefit models released by AMP look at three types
of next-generation sequencing tests: broad panels of dozens of genes used to
diagnose unexplained cases of hearing loss; panels of genes used in cases of
non-small-cell lung cancer to choose targeted therapies; and whole exome
sequencing, covering every protein-coding region of the genome, used to investigate
mysterious rare diseases. Importantly, AMP wanted to be sure its cost model
accurately factors in not only the equipment and consumables used during these
GSPs, but also the computational pipelines used to analyze the results, and the
process of interpreting those results to find likely disease-causing genetic
variants, a much more intensive expert process than is needed for other kinds
of diagnostics.
AMP surveyed a variety of labs performing next-generation sequencing across the country, including both academic and commercial labs, in
some cases visiting the labs and sitting in on their procedures. The labs
evaluated used different sequencing machines, commercial or homebrewed
bioinformatics pipelines, and standard operating procedures for interpreting
results. Combining the cost data from its subject labs, AMP arrived at proposed
all-in costs for these three types of GSPs.
The organization also compared these tests to typical
diagnostic odysseys they would replace. These “health economic value models”
attempt to put dollar values on both cost savings over other testing methods,
and benefits to the patient. Models like this are important to labs as they
petition payers to reimburse them for broad next-generation sequencing. Of the
three types of tests AMP evaluated, the organization concluded that the hearing
loss and whole exome tests were less expensive than alternative methods, and
that the non-small-cell lung cancer panel, while more expensive than narrower
genetic tests, offered better value to the patient by finding targeted therapies
earlier and more often.
All these models, including anonymized cost data from labs,
can be downloaded for free from AMP’s
website. Labs can also download a blank cost template to calculate their
own costs for performing GSPs. AMP and its members will use data like this as they work to negotiate CMS’ final payment rates for the new GSP codes throughout this year.