U.S. spending on genetic tests jumps

  • Los Angeles Times
  • Monday, March 12, 2012 7:15pm
  • Business

LOS ANGELES — Spending on genetic tests has reached $5 billion annually and could top $25 billion within a decade, according to an insurance industry study published Monday.

The rise in spending is likely to intensify the debate over genetic testing as policymakers and employers struggle to contain spiraling health care costs.

The growing availability of genetic and molecular diagnostic tests offers the promise of earlier detection of disease and more personalized treatments that could wring substantial savings from the nation’s $2.6 trillion-a-year health care tab.

But many medical providers and other experts worry that those benefits may be outweighed by indiscriminate use of genetic testing, similar to what has occurred with some spending on popular prescription drugs and expensive imaging tests.

The research arm of UnitedHealth Group Inc., the nation’s largest insurer with 34 million members, conducted the study as well as a survey of physicians and patients on their attitudes toward genetic testing. Researchers and patient advocates have not only raised questions about costs but also expressed ethical and legal concerns about how genetic test results are used by families, insurance companies and physicians.

The study estimates the nation spent about $5 billion on these tests in 2010, and it projects spending to reach $15 billion to $25 billion by 2021.

“We are now in the era of truly personalized care,” said Reed Tuckson, chief of medical affairs at UnitedHealth. “However, this also poses significant challenges to a system that is increasingly unaffordable.”

The Minnetonka, Minn., company estimated its members in private plans, Medicare and Medicaid spent $483 million on genetic tests in 2010 with 40 percent related to infectious diseases, 16 percent for cancer and the rest for inherited disorders and other conditions.

Average annual spending on genetic tests for UnitedHealth members increased 15 percent from 2008 to 2010, driven by higher utilization. Much of the current spending is focused on women because of the wide array of tests available for breast and ovarian cancers as well as prenatal genetic testing.

In a Harris Interactive survey of 1,254 physicians included in the report, 56 percent said new genetic tests will drive up overall health care spending, compared with only 19 percent who thought they will lower costs from improved care.

More than half the 1,506 consumers surveyed by UnitedHealth were concerned about their physician’s ability to know when a genetic test is needed and interpret it, the confidentiality of test results and about possible discrimination. In 2008, the federal Genetic Information Nondiscrimination Act strengthened consumer protections regarding genetic information as it relates to people’s employers and health coverage.

Rapid advances in genetic testing have made it applicable for more people and decreased the average price. Genetic testing is currently available for about 1,800 conditions and three to five new tests become available monthly, the study found.

Tom Bologna, chief executive of Response Genetics Inc. in Los Angeles, said his company is working on molecular diagnostic tests that help determine the appropriate drug therapy for cancer patients. “These can be $100,000 treatments, and for a few thousand dollars we can identify those patients where the drug has real value,” he said. “This has all changed very quickly.”

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

Black Press Media operates Sound Publishing, the largest community news organization in Washington State with dailies and community news outlets in Alaska.
Black Press Media concludes transition of ownership

Black Press Media, which operates Sound Publishing, completed its sale Monday (March 25), following the formerly announced corporate restructuring.

Maygen Hetherington, executive director of the Historic Downtown Snohomish Association, laughs during an interview in her office on Thursday, Feb. 15, 2024, in Snohomish, Washington. (Ryan Berry / The Herald)
Maygen Hetherington: tireless advocate for the city of Snohomish

Historic Downtown Snohomish Association receives the Opportunity Lives Here award from Economic Alliance.

FILE - Washington Secretary of State Steve Hobbs poses in front of photos of the 15 people who previously held the office on Nov. 22, 2021, after he was sworn in at the Capitol in Olympia, Wash. Hobbs faces several challengers as he runs for election to the office he was appointed to last fall. (AP Photo/Ted S. Warren, File)
Secretary of State Steve Hobbs: ‘I wanted to serve my country’

Hobbs, a former Lake Stevens senator, is the recipient of the Henry M. Jackson Award from Economic Alliance Snohomish County.

Mark Duffy poses for a photo in his office at the Mountain Pacific Bank headquarters on Wednesday, Feb. 14, 2024 in Everett, Washington. (Annie Barker / The Herald)
Mark Duffy: Building a hometown bank; giving kids an opportunity

Mountain Pacific Bank’s founder is the recipient of the Fluke Award from Economic Alliance Snohomish County.

Barb Tolbert poses for a photo at Silver Scoop Ice Cream on Thursday, Feb. 29, 2024 in Arlington, Washington. (Annie Barker / The Herald)
Barb Tolbert: Former mayor piloted Arlington out of economic brink

Tolbert won the Elson S. Floyd Award, honoring a leader who has “created lasting opportunities” for the underserved.

Photo provided by 
Economic Alliance
Economic Alliance presented one of the Washington Rising Stem Awards to Katie Larios, a senior at Mountlake Terrace High School.
Mountlake Terrace High School senior wins state STEM award

Katie Larios was honored at an Economic Alliance gathering: “A champion for other young women of color in STEM.”

The Westwood Rainier is one of the seven ships in the Westwood line. The ships serve ports in the Pacific Northwest and Northeast Asia. (Photo provided by Swire Shipping)
Westwood Shipping Lines, an Everett mainstay, has new name

The four green-hulled Westwood vessels will keep their names, but the ships will display the Swire Shipping flag.

A Keyport ship docked at Lake Union in Seattle in June 2018. The ship spends most of the year in Alaska harvesting Golden King crab in the Bering Sea. During the summer it ties up for maintenance and repairs at Lake Union. (Keyport LLC)
In crabbers’ turbulent moment, Edmonds seafood processor ‘saved our season’

When a processing plant in Alaska closed, Edmonds-based business Keyport stepped up to solve a “no-win situation.”

Angela Harris, Executive Director of the Port of Edmonds, stands at the port’s marina on Wednesday, Jan. 24, 2024, in Edmonds, Washington. (Ryan Berry / The Herald)
Leadership, love for the Port of Edmonds got exec the job

Shoring up an aging seawall is the first order of business for Angela Harris, the first woman to lead the Edmonds port.

The Cascade Warbirds fly over Naval Station Everett. (Sue Misao / The Herald file)
Bothell High School senior awarded $2,500 to keep on flying

Cascade Warbirds scholarship helps students 16-21 continue flight training and earn a private pilot’s certificate.

Rachel Gardner, the owner of Musicology Co., a new music boutique record store on Thursday, Jan. 18, 2024 in Edmonds, Washington. Musicology Co. will open in February, selling used and new vinyl, CDs and other music-related merchandise. (Olivia Vanni / The Herald)
New Edmonds record shop intends to be a ‘destination for every musician’

Rachel Gardner opened Musicology Co. this month, filling a record store gap in Edmonds.

MyMyToyStore.com owner Tom Harrison at his brick and mortar storefront on Tuesday, Sept. 6, 2022 in Everett, Washington. (Olivia Vanni / The Herald)
Burst pipe permanently closes downtown Everett toy store

After a pipe flooded the store, MyMyToystore in downtown Everett closed. Owner Tom Harrison is already on to his next venture.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.