2015 WORKERS’ COMPENSATION DRUG TRENDS REPORT Welcome • Audio: participants can listen using their computer speakers or by calling: 1.866.901.6455 Access Code: 528-928-281 • Attendees are muted during the presentation • Please submit questions through the attendee control panel 2 2 Who We Are Healthcare Solutions, the parent company of Cypress Care, Procura Management, ScripNet and Modern Medical, is a leading, national provider of integrated medical cost management solutions for the workers’ compensation and auto/PIP markets. INSURANCE CARRIERS PHARMACY & CLINICAL MANAGEMENT THIRD PARTY ADMINISTRATORS (TPAs) MANAGED CARE ORGANIZATIONS (MCOs) ANCILLARY HEALTH SERVICES GOVERNMENT AGENCIES PPO NETWORKS & MEDICAL BILL REVIEW SELF-INSURED EMPLOYERS CASE MANAGEMENT & MEDICARE SET-ASIDES 3 Speakers Moderator: Nancy Hamlet Senior Vice President, Marketing Presenters: Robin Thompson, RPh Director of Clinical Services [email protected] Benjamin Link, PharmD, RPh Clinical Pharmacist [email protected] 4 4 4 Agenda • Overall Trends • Ongoing & Evolving Issues • Therapeutic Class Trends • Regulatory Landscape • Key Takeaways 5 5 5 Overall Trends 12.5% 7.9% Brand Drug AWP Price Generic Drug AWP Price 6 6 Overall Trends *Drug Mix = Increased generic use with a decrease in brand drug usage Healthcare Solutions’ clinical programs helped lower the impact of AWP inflation. 7 7 Percent Savings of Drug Cost at Time of Generic Release PERCOCET LIDODERM® CYMBALTA® Today’s generic releases produce less savings. 70% 17% Previous Generic Releases 13% New Generic Releases 8 8 Number of Generic Manufacturers Generic Competition and Drug Prices 1 94% 2 52% 3 44% 4 39% 5 33% 6 26% 7 23% 8 21% 9 20% 0% 20% 40% 60% 80% 100% Average Relative Price per Dose Graph adapted from U.S. Food and Drug Administration website. 9 9 Generic Dispense Rate (GDR) Research indicates, for every 1% increase in GDR, clients save 1.3%.1 1 Liberman, J.N., & Roebuck, C. (2010). Prescription drug costs and the generic dispensing ratio. J Manag Care Pharm. 16(7):502-06. 1010 Ongoing and Evolving Issues Specialty Medications Compounds Opioids 1111 Specialty Drugs What are specialty drugs? Medications that have one or more of the following characteristics: Special handling instructions Complex administrations Monitoring requirements High costs Treat complex/chronic disease states The Issue: Cost 1212 Hepatitis C Comparative Costs of Previous and Current Hepatitis C Treatments Once more terminal than HIV, Hepatitis C can now be cured in the majority of cases.2 2 Ward, J. (2014). Hepatitis c: 25 years from discovery to cure. Retrieved from http://www.medscape.com/features/slideshow/hepatitis-c. Registration and login required. 1313 The Solution Specialty Medication Network provides discounted rates and management oversight 1414 Future Consideration: Biosimilars Biosimilars vs. Traditional Generic Medications Manufacturing Process Up-front investment by manufacturers most likely will lead to reduced cost savings for biosimilar medications. Neupogen, a brand name biologic product, has a cost between $350-$400 per dose. Traditional generic medications cost less to produce, resulting in higher cost savings. Zarxio, the first biosimilar product approved in the U.S., does not currently have pricing; however, an equivalent product released in Europe, had a price discount of 26%. 1515 Compounds The Issue: In the past 4 years, the average cost of compounds has escalated 225%, with paper bill and point of sale costs increasing 317% and 214% respectively. $1,500 $1,200 $900 $600 $300 $0 2011 2012 2013 2014 1616 Compounds The Solution: Gate 1: Establish a PBN in California Gate 2: Utilization Review Gate 3: Compound Medication Review Gate 4: Peer Review Gate 5: Independent Medical Examination 1717 Top Therapeutic Drug Classes Opioids Anti-Inflammatories Skeletal Muscle Relaxants Anticonvulsants Antidepressants 1818 Top Opioid Drugs 1919 Opioids The Issue: Hydrocodone with acetaminophen combination products (HCPs) were rescheduled from a Schedule III to a Schedule II. Oxycodone with acetaminophen’s AWP increased 160% by the end of 2014. 2020 Opioids The Solution: Early intervention produces greater results 2121 Top Anti-Inflammatory Drugs 2222 Anti-Inflammatories The Issue: The reclassification of HCPs likely caused spend and utilization to increase for this drug class. 2323 Anti-Inflammatories The Solution: Medication Reviews Looking Ahead: The generic release of Celebrex® is expected to result in decreased spend for clients in the coming year. + 2424 Top Skeletal Muscle Relaxant Drugs 2525 Skeletal Muscle Relaxants The Issue: This drug class is commonly used in the treatment of work-related injuries; however, product labeling and guidelines do not recommend chronic use of most muscle relaxants. 2626 Skeletal Muscle Relaxants The Solution: Physician Intervention Letter CASE STUDY: Physician Intervention Letter CLAIMANT: 46 year old male INJURY: Low back and neck pain PROBLEM: Extended use of carisoprodol (Soma) from two prescribers SOLUTION: Physician intervention letter sent RESULT: Both prescribers ceased prescribing carisoprodol; resulting in a savings of 5% on the claim 2727 Top Anticonvulsant Drugs 2828 Anticonvulsants The Issue: Lyrica® has seen an increase in AWP of 20%, contributing to 49.4% of spend for this drug class. Generic Lyrica® will not be available until 2018. 2929 Top Antidepressant Drugs 3030 Antidepressants The Issue: Cymbalta® and its generic, duloxetine represent the most common drug within this drug class. Antidepressants are historically a difficult drug class to manage. 3131 Anticonvulsants & Antidepressants Solutions The Solutions: Step Therapy Clinical Liaison $ $$ Nno texto $$$ Lyrica® Gabapentin 3232 Regulatory: ODG Formulary 3333 Key Takeaways Generic/AWP Inflation: 8.6% increase in AWP – 4.5% program offset = 4.1% increase in total spend Specialty Medications: New higher cost specialty medications may impact spend in the future Specialty medication networks provide discounted rates and management oversight Compounds: There was a rise in the number, complexity and cost of compounds in 2014 Utilize the appropriate tools to mitigate the rising costs Opioids: Continues to be the top therapeutic drug class by spend and utilization Early intervention produces greater results 34 Your PBM Partner Our governmental affairs department monitors daily activity; conducts outreach; and participates in public hearings, teleconferences and meetings to ensure the best possible solutions are adopted for clients and injured workers. Healthcare Solutions will continue to develop innovative clinical programs to help lower your medical spend and increase claimant safety. 35 Please submit questions through the attendee control panel located on the right-hand side of your screen Additional Questions? Please email [email protected] 36 Thank you Robin Thompson, RPh Director of Clinical Services [email protected] Benjamin Link, PharmD, RPh Clinical Pharmacist [email protected] Please send your questions, comments and feedback to: [email protected] 37
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