Barriers to Personalized Medicine: Payer Reimbursement Challenges Slow Diagnostic Test Adoption
- Less than 5% of US private companies currently reimburse for genetic tests, creating a significant barrier to personalized medicine adoption despite its potential to reduce healthcare costs.
- Studies show personalized medicine diagnostic tests can generate savings between $600-$28,000 per patient, with successful examples like Oncotype DX demonstrating $1,930 savings per patient through reduced chemotherapy needs.
- Pay-for-performance models are emerging as a potential solution, growing at 26% annually in the US, offering a win-win approach for pharmaceutical companies and payers in personalized medicine implementation.