XiFin Supports New “Coalition to Strengthen the Future of Molecular Diagnostics”

XiFin is proud to be a member of the recently launched Coalition to Strengthen the Future of Molecular Diagnostics (CSFMD). The coalition was formed with the objective of informing policymakers and the Centers for Medicare and Medicaid Services (CMS) about the value of genetic testing and the impact timely and accurate diagnosis have on treatment decisions and patient outcomes. The coalition supports CMS’ decision for more transparency and a new more efficient pricing methodology, but is concerned about the process by which newly proposed interim pricing was determined and accepted. CSFMD is asking CMS for immediate relief from below cost reimbursement for some tests and an improved data-driven pricing process that will allow for more transparency and participation from various industries and interested groups.

Unlike the strong and effective lobbying efforts of the American Medical Association, the pharmaceutical industry and the hospital association, historically the lab industry, representing only 2-3% of healthcare spend, has had no meaningful lobby and thus no voice to inform the public and policy makers of its significant role in disease and therapy management.  In fact, this tiny piece of the healthcare spend influences 70% of all therapy decisions made by physicians, yet has been the easy target for cost cutting measures lacking the clout to be heard.  The MDx Coalition has given the industry the ability to now educate the public and policy makers about the most promising innovations revolutionizing personalized medicine that identify targeted therapies likely to benefit an individual, while at the same time identifying those which will not or which may cause more harm than good.  Not only does this essential tool to healthcare management provide individuals with better healthcare outcomes, but it is the single most effective tool with which to contain spiraling healthcare costs.  

A study done by McKinsey & Co for the Personalized Medicine Coalition revealed that of approximately $300B spent on medications, approximately half ($150B) went to drugs that were ineffective for the patients that took them.  Further findings estimate the cost of adverse drug events to range between $45 to $135B per year.  These costs could be averted through the use of diagnostic tests for the appropriate biomarkers.  These savings are far greater than the entire revenues of the laboratory industry.  The Coalition is fighting to preserve access to these essential diagnostics that not only improve the quality of life, but cut waste and excesses that unnecessarily drive up healthcare costs.