Burgess Floats ‘Warranty’ Value-Based Pay Path For Costly Cell & Gene Therapies

By Gabrielle Wanneh / April 16, 2024 at 5:13 PM
House Budget Committee Health Care Task Force Chair Michael Burgess (R-TX) is advocating a new value-based “warranty” payment approach for costly cell and gene therapies under which the therapy’s high upfront cost would essentially be mortgaged across payers as patients switch plans in subsequent years. The therapy’s initial high cost and the resulting long-term benefits would be shared across plans, but the drug maker would be on the hook to refund the cost if the therapy doesn’t work. Burgess highlights...

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