Zweig powerpoint on Palliative Care in Nursing Homes for Theme Session co-sponsored by Groups on Geriatrics and Pain Management & Palliative Car - Presentation Transcript
Pharmacoeconomics 101: How to Beat the High Cost of Prescription Medications – Resources for you and Your Patients Mark Cucuzzella MD FAAFP (West Virginia University) Heather Congdon, PharmD (University of Maryland)
The Old Timey Mountains Potomac R Shenandoah R Maryland W. Virginia Virginia FM
“ The education of a man (or woman if Lee were around in 2006) is never completed until he dies” Robert E. Lee
Objectives
Background pharmacoeconomics
How to learn drug prices / comparison shop
Generic medications
Slicing medications…..yes it can be done more than you think
Selecting other medications in the same class
Use the Government to Your Advantage- non partisan stuff that saves your patients cash
Pharmaceutical assistance programs
Your Mother
66yo with HTN, DM2, hyperlipidemia, COPD and was recently dc’d from the expensive care unit after an angina episode
Her dc meds were clopidogrel 75mg, atorvastatin 80mg, rosiglitazone 8mg, losartan 100mg, Metoprolol Ext Release 100mg, metformin 1000mg bid, fluticasone/salmeterol diskus, and a baby aspirin
Depressed by how much this all costs, her PCP prescribes escitalopram
She has heartburn from all the meds so he prescribes rabeprazole 20mg.
She has Medicare. What is her daily med cost?
$37.42 a day or $1122.60 a month
Clopidogrel 75mg $4.53
Atorvastatin 80mg $4.06
Rosiglitazone 8mg $6.93
Losartan 100mg $3.03
Metoprolol Ext Release 100mg $1.50
Metformin 1000mg bid (Wallmart) $0.13
Fluticasone/salmeterol diskus $7.03
Aspirin $0.01
Duloxetine 30mg $4.30
Rabeprazole $5.90
Prices from Walgreens.com Oct 2007
More than 80 million Americans have been without prescription coverage sometime in past two years
More than 4 million Americans with Medicare lack prescription coverage
Spending on prescription drugs has increased >10%/yr from 1994 to 2004, 8% in 2005
Spending on prescription drugs outpaces every other category of public health expenditure
200 Billion spent in 2005 (5x increase over 1990)
Source Kaiser Family Foundation
Background - The Ongoing Crisis
Background – Knowledge is Power
Those caught in the gap between public healthcare coverage and private health insurance suffer the most
Those unable to pay for their prescription often return to the clinic or emergency room in even worse condition
Knowing how to save money on your drugs can literally be a lifesaver
Public information will eventually reverse the trend in prescription drugs costs
Doctors Don’t Talk About Cost American J Managed Care Nov 2006
185 audiotaped visits at 2 clinic sites UCLA
MDs talk cost only 1/3 time when prescribing….this also includes discussion of generics, insurance, refills
Patients asked about cost or insurance 2% of time
What costs more?
45 mg of pioglitazone
Big Mac, large fries, large coke
Pioglitazone $7.36 Big Mac Meal $4.39
Which Industry Had the Highest Profit as Percent of Sales or Assets 1995-2005?
Oil
NBA
Big Pharmacy
Fashion
Fast Food
2006 Fortune 500 Most Profitable Industries: Return on Revenues
Big Pharma hurting a little….now # 2
Fortune 500 2006 rankings
Mining/Crude oil now #1
Background - Big Pharma Basics
Median profit margin 17% for top 10 Big Pharma (3.1% average other 490 Fortune 500)
10 Pharm companies had more profit than other 490 combined ( Public Citizen )
5 companies US, 5 Euro….but US main profit center
Source Marcia Angell MD (former NEJM editor) author Truth About the Drug Companies
Big Pharma Basics - “Me-Too” Drugs
Minor variations of highly profitable drugs
1997-2003 487 Drugs approved by FDA
379 “appearing to have similar qualities to one or more drugs already on market”
333 not even new compounds- reformulations
Only 67 new compounds felt to be improvements over old ones
Innovation is actually rare
Source Marcia Angell MD (former NEJM editor) author Truth About the Drug Companies
Big Pharma Basics - Marketing
For 1990s top 10 pharmaceutical companies
35 % Marketing
11-15% R & D
Profits 19-25% of sales
2002 US $67 B of $217 B in sales
Where does this go???
Promoting drugs
Promoting “disease” (example RLS)
Source Marcia Angell MD (former NEJM editor) author Truth About the Drug Companies
Big Pharma Basics – Influence on Medical Profession
Drug companies support most CME, conferences…. STFM we pay to present…this is good
Lunches, perks, dinners
JAMA Jan 2006 “ Health Industry Practices that Create Conflicts of Interest ”…..a call for AMCs to separate from industry
Family Medicine Jul-Aug 2006 “ Of Doctoring Conventions and Drug Companies ”…..a look at our AAFP conference
Big Pharma Basics – Influence on Government
Laws allowing suits to extend patents
Publicly funded research with profits to drug companies
Prohibitions from drugs crossing borders
FDA not requiring to test drugs against old ones in same class
Allowing Part D to pass which prohibits Medicare to bargain for lower prices similar to VA, DOD, or other large insurers.
2003 – 675 lobbyists employed
Perfect Storm Approaching Big Pharma ?
Many blockbusters coming off patent
Not many new innovative drugs in the pipeline
Negative press on unethical business practices
Public awareness of many physician conflicts of interest (Read On The Take )
Consumers becoming more empowered with knowledge (why we are here)
Lawsuits hurting finances and public trust
True or False
Generic drugs are lower quality than brand?
It is inappropriate to change a medication if the patient has been on it for a while?
There are many assistance programs to help limited income patients with medications?
Free samples usually decrease the cost of medications?
The sales rep giving you lunch is there with the sole purpose of helping educate you?
True or False
Generic drugs are lower quality than brand? F
It is inappropriate to change a medication if a patient has been on it for a while? F
There are many assistance programs to help limited income patients with medications? T
Free samples usually decrease the cost of medications? F
The sales rep giving you lunch is there with the sole purpose of helping educate you? F
What does the drug manufacturer make from these patients? Rank from highest margin to lowest
VA patient
Uninsured patient
HMO patient
Medicare patient (incl new Part D)
Private insurance
Medicaid
What does the drug manufacturer make from these patients? Rank from highest margin to lowest
Uninsured patient
Medicare patient (incl new Part D)
Private insurance
Large HMO patient
Medicaid
VA patient
The cost of Medicare Part D over 10 years
1 Billion
50 Billion
100 Billion
350 Billion
675 Billion
Source Kaiser Family Foundation 2007
Journal Heath Affairs Feb 2006 Analysis from Centers for Medicare and Medicaid Services
Health care spending now represents about 16% of the economy. But in a decade, it will make up about 20% of the economy.
Medicare spending will more than double, from $309 billion in 2004 to $792 billion, in 2015
Medicaid spending will grow from $293 billion to $670 billion by 2015
The nation's total health care bill by 2015 will rise to more than $4 trillion
How to Learn Drug Prices / Comparison Shopping
Informed consumers pay the lowest prices
Different segments of the population pay different prices for the same prescription drugs
Know the four types of prescription drug prices
Cash Customers
Veterans
Medicaid Beneficiaries
Private Health Insurance Subscribers
How to Learn Drug Prices / Comparison Shopping
There are several sites with this capability
Walgreens Drug Pricing Site
Bid RX listen to NPR story on Bid RX
Pillbot
Drugstore
One pharmacy won’t always have the best price for a certain Rx drug
Wholesalers and online pharmacies are great resources for discounted medication
Always check an online pharmacy’s standing with the National Association of Boards of Pharmacy at www.nabp.net
The Future?
Humana has a telephone robot named Eliza that calls members to tell them about cheaper drug alternatives.
In 18 months it has saved members $11 million
USNWR Nov 6 2006 Best Health Care Plans issue
Generic Medication
Encourage patients to take generic alternatives
Generics undergo the same rigorous FDA inspections as brand-name drugs
Consumer Reports Best Buy Drugs Project provides “consumers and their doctors with information to help guide prescription drug choices–based on effectiveness, a drug's track record, safety and price”
Generic Medication
U.S. brand pharma sales for 2005: $229.5 billion
U.S. generic pharma sales: $22.3 billion.
U.S. generic sales increased by 20% in 2006. (Source: IMS Health )
8,400 of the 11,167 drugs listed in the FDA’s Orange Book have generic counterparts. (source: FDA)
Generic Medication
National Association of Chain Drug Stores 2004
Average cost of a brand-name script is $96/mo
Average cost of a generic is $28/mo
Generics were 56% of all scripts in 2005 (IMS Health data) but less than 13.1% of every dollar spent on prescription drugs.
Generics cost 30% to 80% less than brand counterparts
2006 the top 10 generics: Hydrocodone/APAP, Amoxicillin, Lisinopril, Hydrochlorothiazide, Atenolol, Furosemide Oral, Alprazolam, Albuterol Aerosol, Azithromycin, Metformin. (source: Drug Topics , 2007)
Generics- The Future Looks Sunny
The generic industry sales grew by roughly 20% in 2006. (Source: IMS Health)
Blockbuster products coming off patent are valued at $27 billion in 2007, and $29 billion in 2008. (Source: Bain & Company)
How many generic drugs are awaiting FDA approval?
50
100
200
400
800
Generic Drugs Hit Backlog At FDA No Plans to Expand Review Capabilities
Washington Post Saturday, February 4, 2006; Page A01
At a time when the use of low-cost generic drugs is being embraced as one of the few ways to rein in skyrocketing health care costs, the Food and Drug Administration has a backlog of more than 800 applications to bring new generic products to the market -- an all-time high……
Which of the Following are Available Generic?
Fluoxetine
Lovastatin
Metoprolol
Clopidogril
Ciprofloxacin
Metformin
Drugs Coming Off Patent 2007-2009
Lotrel Jan. 2007
Norvasc Jan. 2007
Imitrex June 2007
Coreg 2007
Tequin Dec2007
Zyrtec Dec.2007
Fosamax Feb. 2008
Effexor/XR June 2008
Risperdal June 2008
Advair Aug. 2008
Serevent Aug. 2008
See Drug Topics for full listing
Here are just a few
What are these seniors doing? Hint….they are from Minnesota
Slicing Medications – Which of the following cannot be split?
Atorvastatin (Lipitor)
Metoprolol Ext Release (Toprol XL)
Sildenafil (Viagra)
Esomeprazol (Nexium)
Paroxetine (Paxil)
Pioglitazone (Actos)
The Slicing Bible
Same Class Medications
Most literature supports a class effect over a specific brand
SSRI’s equivalent ( JAMA Dec 2001 )
PPI’s all equivalent ( Infopoems 2005 )
We really are comparing…
Same Class Medications -Nonsedating Antihistamines $60.19 Cetirizine Zyrtec $20.33 Loratadine Claritin $65.67 Desloratadine Clarinex $67.29 Fexofenadine Allegra Monthly Cost Generic Name Brand Name
Getting the Government to Help Your Patients Cartoon may be true when it comes to IT….. but the Gov’t can get cheap drugs
Veterans Programs
Veterans who qualify for government healthcare receive some of the best prescription drug coverage. VA Home page
VA Form 10-10EZ; “Application for Benefits”
VA Health Benefits Service; 877-222-VETS
Medicare and Medicaid
2006 -OMB estimates that $578 billion will be spent on Medicare and Medicaid.
Part D Basics
Info for FPs and patients
Medicare's Web site
Medicare Rights Center Part D Web page
AAFP's Medicare Prescription Drug Coverage Web page
physician-focused information
a standardized Exceptions Request Form
Pharmacist-to-Physician Fax Form
links to the Medicare Prescription Drug Plan Finder.
Medicare Part D 2007 Formulary Changes
Medicaid
Know the ins and out through Kaiser Family Foundation Medicaid Information Page .
In most state budgets, Medicaid spending has surpassed that assigned to education.
The BIG Picture- Medicare and Medicaid
Pharmacy Assistance Sources
Pharmaceutical companies
Drug discount programs
$4 generic drug program
Medicare Part D
A 52 y.o. male presents to a family medicine clinic for a physical after not seeing his physician for 10 years. In the past, his employer did not provide health benefits, however, they recently started doing so. As part of his physical, he was given a lab slip for blood work and was found to have diabetes (FBG 350) and hyperlipidemia (LDL 145; trigs 700), and also was found to have a blood pressure of 156/96. Patient was given Rx’s for Avandamet 2/500 bid, Altace 5mg qd and Lipitor 20mg qd. Patient then goes to pick up his prescriptions at the local Walgreens and the total amount is $293 Although patient has recently received health benefits, his employer does not provide prescription coverage. How can we help this patient?
Pharmaceutical Company Programs
http:// www.needymeds.com
http:// www.rxassist.org (account required)
http:// www.pparx.org
Click here to begin
Select “L”, then Lipitor
Click here to link directly to application
Requires account
Drug Discount Programs
http:// www.rxoutreach.com (generics only)
http:// www.togetherrxaccess.com
Click Here Click here
Rx outreach income requirements
Income requirements
$4 generic drug program
Wal-Mart ( www.livebetterindex.com/4drug.pdf ) and Sam’s Club
Approx. 320 generic medications available through the program
$4 Generic Drug Program – Medication Classes Covered
Allergy
Analgesics
Anti-inflammatory
Antibiotics
Antidepressants
Antifungal
Antipsychotic
Antiviral
Anxiety
Asthma
Cardiac
Cholesterol
Cough/cold
Diabetes
Gastrointestinal
Glaucoma
Hormone
Oncology
Parkinson's
Seizure
Thyroid
Vitamins
Happy Days or a Big Mystery?
Who Can Get Part D Coverage?
All Medicare beneficiaries – people >65 years of age, certain disabled persons, and those with ESRD – are eligible for Part D coverage
Most beneficiaries must actively sign up for a Medicare prescription drug plan
Beneficiaries with prescription drug coverage from an employer or union that is at least as good as the standard Medicare coverage can keep it
Medicare Part D 2007 Phase 3 : YOU PAY $2.15 FOR EACH GENERIC, OR $5.35 FOR EACH BRAND NAME, OR 5% OF THE TOTAL OF EACH PRESCRIPTION, WHICHEVER IS THE HIGHER NUMBER. EXAMPLE: A $200 DRUG COSTS YOU $10.00. THIS 5% ARRANGEMENT CONTINUES ONLY UNTIL DECEMBER 31, 2007
Drugs NOT Covered by Medicare
Benzodiazepines
Barbiturates
Most OTC drugs
Prescription vitamins and mineral products, except prenatal vitamins and fluoride preparations
Agents used for symptomatic relief of cough and colds
Agents used for cosmetic purposes or hair growth
Agents used to promote fertility
Agents used for anorexia, weight loss, or weight gain
Drugs covered under Medicare Parts A or B
Help for People with Limited Income and Resources Apply for extra help through social security office: www.socialsecurity.gov 1-800-772-1213
Low-Income Assistance
Medicare beneficiaries who also are eligible for Medicaid benefits:
Pay no prescription drug plan premiums
$0 deductible
$1/$3 per prescription cost-sharing ($0 in LTC)
No “coverage gap”
Back to the Sample Patient…
Patient’s annual household (2 people) income is $32,500
This makes him ineligible for most “free” pharmaceutical programs
What about the discount programs
Suggestions for drug regimen improvement
Rx Outreach
$60 for ALL THREE medications for NINETY DAYS
$20 for one month supply vs. $293 with brands
Together Rx
Patient is eligible (<$40K income) and would receive a 25-40% discount on the medications prescribed by his doctor
Conclusions
You will make a big difference in someone’s life by helping make medications more affordable and accessible
Informed consumers ask the right questions and puts downward pressure on the price of prescription drugs
Share this information with your colleagues; knowledge is the first step to change!
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