Cancer drugs to cost £2.5bn a year

The cost of emerging cancer treatments could cripple the NHS and flaw current private medical insurance (PMI) pricing, according to Mike Hall, chief executive at Standard Life Healthcare.

Speaking at Laing & Buisson's private healthcare insurance conference, Hall said a new wave of cancer drugs would cost the NHS an extra £2.5bn a year. Not only are the drugs expensive, but many will be taken by patients for long periods, or even for a lifetime, to keep cancer under control.

Hall said private medical insurers need to look ahead and consider future drug bills when pricing products. "We need a better understanding of how drugs will hit the market," he said.

"Pricing products from today's knowledge looks as though it will be inadequate. We know these developments will drive more treatments and we know more treatments will drive more cost. Profit growth for PMI companies will be value-driven not profit-driven."

Hall urged the Government to consider the potential cost of cancer therapies as Derek Wanless conducts the Treasury's review into public spending. He said the Association of British Insurers' PMI committee would be putting the case forward to the Wanless Review.

"Better public health means access to better drugs which patients will rightly demand to improve their chances of a healthy life. A number of new cancer drugs will come onto the market in the next few years which will transform cancer treatment in the UK, resulting in more people managing their condition successfully just as they currently do with diabetes.

"The Government must now consider ways of providing the necessary funding for these new treatments," said Hall.

Although cancer is predicted to be the main driver of future treatment costs, Hall said the NHS and PMI industry should also be aware of new develop-ments for other life-threatening conditions.

"It is not just the cost of new cancer drugs that has to be taken into account. Their use will also mean more people are living longer and using more healthcare services. New devel-opments in other areas, such as heart disease, will only add to the pressure on resources."