U.K. watchdog rejects new skin cancer drug Maria Cheng/ Associated Press

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U.K. watchdog rejects new skin cancer drug Maria Cheng/ Associated Press

Too expensive London — An independent British medical watchdog says the first treatment proven to help people with the deadliest form of skin cancer is too expensive to be used by the U.K.'s health care system, a recommendation critics called a potential death sentence. The drug, Bristol-Myers Squibb's Yervoy, has offered some hope to people with advanced skin cancers, though a study of patients with advanced, inoperable melanoma showed it extended survival only four months on average. The National Institute for Clinical Excellence, or NICE, advised Friday that, at a cost of 80,000 pounds ($126,600), Yervoy "could not be considered a cost- effective use" of health funds. A final decision is expected next month after a public consultation.

U.K. payment mechanisms In the U.K., most medicines are paid for by the government, as long as they're recommended by the cost-efficiency watchdog. The agency commonly rejects expensive drugs, including recently advising against new treatments for prostate cancer, breast cancer and multiple sclerosis, though patients and doctors are increasingly protesting the decisions. The government usually adopts NICE's recommendations, meaning doctors in the government-funded health service cannot prescribe Yervoy without NICE's approval.

Not convinced In its decision, NICE said it was not convinced by the evidence, saying the data for Yervoy, which works by stimulating the immune system to fight cancer, did not compare it to older drugs used to treat melanoma. NICE also said the trial was too short to know how long the drug's effects would last and raised concerns about its side effects. Patient groups and charities slammed the decision, labeling it a "death sentence" for people with advanced skin cancer.

What are payment rules Services are not entirely free. English patients pay £7.40 (about $11.90) for each prescription, but close to 90 percent of prescriptions are exempt from charges, and patients in Scotland, Wales and Northern Ireland are not charged. As of 2011, patients pay no more than £204 (about $328 at the August 2011 exchange rate of about $1.61 per £1) for each “course of [dental] treatment”. This maximum, Band 3, includes crowns, dentures and bridges – others treatments are far less. Those receiving means-tested benefits and their adult dependents, children under age 16 (under age 19 if a student), pregnant women, and nursing mothers are exempt from dental and prescription charges.

The Economics $$ Is it this? Costs Benefits Costs Benefits … or this?