The process of evaluating medical technologies for third-party coverage.

A detailed review of records and documentation considered more than 100 technology evaluations performed in conjunction with coverage decisions by the Medicare program and by a major Blue Cross/blue Shield plan. Medicare evaluations were highly structured, synthesizing thorough literature reviews, recommendations from the National Institutes of Health and other governmental agencies, and information solicited from medical specialty societies and independent practitioners; however, the material supplied by nongovernmental sources seldom influenced the coverage recommendations. In contrast, the Blue plan's evaluations were based largely on presentations and discussions at advisory committee meetings, after receiving informational inputs that were more limited than those used in Medicare evaluations. The fraction of technologies recommended for coverage was slightly over 50% for each carrier. If information was strongly positive about either a technology's safety, its effectiveness, or both, then coverage was nearly always recommended. Still, the carriers differed significantly in the stage of development of the practices evaluated and in their willingness to make a coverage decision in the face of both safety and effectiveness data that were regarded as tentative. Because coverage decisions, and the speed with which they are conducted, may be crucial to the rate of a technology's diffusion--and possibly even to the rate of innovation--the authors conclude that it is important to understand clearly the process by which this type of technology assessment is performed.