scholarly journals Analysis of Proposed Medicare Part B to Part D Shift With Associated Changes in Total Spending and Patient Cost-Sharing for Prescription Drugs

2019 ◽  
Vol 179 (3) ◽  
pp. 374 ◽  
Author(s):  
Thomas J. Hwang ◽  
Nina Jain ◽  
Julie C. Lauffenburger ◽  
Kerstin N. Vokinger ◽  
Aaron S. Kesselheim
2015 ◽  
Vol 11 (2) ◽  
pp. e190-e198 ◽  
Author(s):  
Amy J. Davidoff ◽  
Franklin B. Hendrick ◽  
Amer M. Zeidan ◽  
Maria R. Baer ◽  
Bruce C. Stuart ◽  
...  

Improved coordination between Part B and D benefits regarding issues of home injection of medications may create incentives that improve patient access and convenience.


Blood ◽  
2012 ◽  
Vol 120 (21) ◽  
pp. 3176-3176
Author(s):  
Amy J. Davidoff ◽  
Franklin Hendrick ◽  
Bruce C. Stuart ◽  
Amer M. Zeidan ◽  
Rahul Shenolikar ◽  
...  

Abstract Abstract 3176 Background: Erythropoiesis-stimulating agents (ESAs) are a key component of chronic anemia management, particularly in lower-risk myelodysplastic syndromes (MDS). Our prior research indicates that patients (pts) with limited mobility, financial resources, and social supports are less likely to receive ESAs. ESAs administered in a physician office are covered by Medicare Part B. Qualifying MDS pts may benefit from the option of home injection, which can be reimbursed by Medicare only under the prescription drug benefit (Part D). Part D may require substantial cost sharing, particularly during the coverage gap, while pts receiving the low income subsidy (LIS) face limited out-of-pocket (OOP) cost sharing. The need for prior authorization is common in Part D plans, unlike Medicare Part B. We examined the association between patient and Part D plan characteristics and receipt of ESAs through Medicare Part D. We hypothesized that pts with lower cost sharing, poor functional status and greater financial resources would be more likely to receive ESAs covered through Part D. Methods: Using 100% Medicare enrollment and claims data from 2005–2008, we selected beneficiaries assigned MDS diagnostic codes. The study cohort consisted of the subset of MDS pts enrolled in Medicare Parts A and B from 12 months before MDS diagnosis, and Part D enrolled from MDS diagnosis forward. Pts with Medicare Advantage (HMO enrollment) or with renal disease were excluded. Part D plan characteristics were linked to patient-level observations. Type and level of cost-sharing associated with the highest branded drug tier was used to proxy the OOP payment associated with a Part D claim for ESA. ESA use within 6 months of MDS diagnosis was identified from Part B claims and Part D event files. We used a 2-part modeling strategy, examining receipt of any ESA, and receipt of any Part D covered ESA among beneficiaries who received ESAs. The analysis was operationalized using multivariate logistic regression, with explanatory variables including measures of LIS receipt, Part D cost sharing, pt demographics, MDS risk group, and health status [Charlson Comorbidity Index (CCI), predicted poor performance status (PS)]. Results: The cohort included 19,504 patients, with 11,480 (59%) receiving any ESAs; 1,009 (5.2%) or 9% of those receiving ESAs had at least 1 Part D claim. LIS was received by 37% of the study cohort. Mean Part D coinsurance rate for branded drugs was 28%, with a mean copay of $41. Multivariate regression results indicated that, among pts with any ESA, those with LIS were 12% more likely to receive ESAs through Part D (p<0.01). Among those without LIS, a $10 increase in copay levels was associated with a 0.5 percentage point lower probability of receiving ESAs covered through Part D (p<0.05). Increasing age and greater CCI (more comorbidities) were associated with both greater probabilities of any ESA, and receiving them through Part D. In contrast, patients with poor PS and/or residing in a nursing home were less likely to receive any ESA, but if they received ESAs they were more likely to receive them through Part D. Higher income was associated with a greater probability of Part D coverage of ESA. For patients without LIS who received ESAs through Part D, mean OOP payment per claim was $462 (median $238), and prior authorization was required for 80% of claims. For a standard claim for 60,000 units of epoetin-alfa, we calculated an OOP payment of $245 under Part D vs. $112 under Part B. Conclusions: Our results indicate that relatively few MDS pts received ESAs at home through Part D. Pts were responsive to cost sharing under Part D, with LIS recipients more likely to receive ESAs covered by Part D; increased copayments were associated with reduced use of Part D-covered ESAs. OOP payments required under Part D were substantially higher than requirements under Part B. In addition, Part D use is commonly subject to prior authorization, while Part B is not, further limiting home administration. The Medicare program may need to consider changes to Part D plan incentives to improve access to therapies such as ESAs that can be administered safely at home. Disclosures: Davidoff: Novartis: Research Funding; Celgene: Research Funding; National Institutes of Health: Research Funding; GlaskoSmithKline: Research Funding. Off Label Use: Erythropoiesis-Stimulating Agents (ESAs) are indicated for the treatment of anemia associated with chronic renal failure and myelosuppressive anticancer chemotherapy in solid tumors, multiple myeloma, lymphoma, and lymphocytic leukemia. The current research explores the use of ESAs as an off-label indication within patients diagnosed with myelodysplastic syndrome. Stuart:GlaskoSmithKline: Research Funding. Shenolikar:GlaskoSmithKline: Employment. Gore:Celgene Corporation: Consultancy, Research Funding.


2021 ◽  
Vol 20 (1) ◽  
Author(s):  
Vicky Mengqi Qin ◽  
Yuting Zhang ◽  
Kee Seng Chia ◽  
Barbara McPake ◽  
Yang Zhao ◽  
...  

Abstract Objectives This study aims to examine: (1) temporal trends in the percentage of cost-sharing and amount of out-of-pocket expenditure (OOPE) from 2011 to 2015; (2) factors associated with cost-sharing and OOPE; and (3) the relationships between province-level economic development and cost-sharing and OOPE in China. Setting A total of 10,316 adults aged ≥45 years from China followed-up from 2011 to 2015 were included in the analysis. We measured two main outcome variables: (1) patient cost sharing, measured by the percentage of OOPE as total healthcare expenditure, and (2) absolute amount of OOPE. Results Based on self-reported data, we did not find substantial differences in the percentage of cost sharing, but a significant increase in the absolute amount of OOPE among the middle-aged and older Chinese between 2011 and 2015. The percentage of cost-sharing was considerably higher for outpatient than inpatient care, and the majority paid more than 80% of the total cost for prescription drugs. Provinces with higher GDP per capita tend to have lower cost-sharing and a higher OOPE than their counterparts, but the relationship for OOPE became insignificant after adjusting for individual factors. Conclusion Reducing out-of-pocket expenditure and patient cost sharing is required to improve financial protection from illness, especially for those with those with chronic conditions and reside in less developed regions in China. Ongoing monitoring of financial protection using data from various sources is warranted.


BMJ ◽  
2019 ◽  
pp. l4257 ◽  
Author(s):  
David G Li ◽  
Mehdi Najafzadeh ◽  
Aaron S Kesselheim ◽  
Arash Mostaghimi

AbstractObjectivesTo characterize the trends, drivers, and potential modifiers of increased spending by US Medicare beneficiaries on medicines deemed essential by the World Health Organization.DesignRetrospective cost analysis of Medicare Part D Prescriber Public Use File, detailing annual generic and brand name drug prescribing and spending from 2011 through 2015 by Medicare Part D participants who filled prescriptions for WHO essential medicines.SettingUS Medicare System.Main outcome measuresTotal and per beneficiary Medicare spending, total and per beneficiary out-of-pocket patient spending, cumulative beneficiary count, claim count, and per unit drug cost. All spending measures were adjusted for inflation and reported in 2015 US dollars.ResultsMedicare Part D expenditures on 265 WHO essential medicines between 2011 and 2015 was $87.2bn (£68.4bn; €76.5bn), with annual spending increasing from $11.9bn in 2011 to $25.8bn in 2015 (116%). Patients’ out-of-pocket spending for essential medicines over the same period was $12.1bn. Total annual out-of-pocket spending increased from $2.0bn to $2.9bn (47%), and annual per beneficiary out-of-pocket spending on these drugs increased from $20.42 to $21.17 (4%). Total prescription count increased from 376.1m to 498.9m (33%), and cumulative beneficiary count grew from 95.9m to 135.8m (42%). Of the essential medicines included in the study, the per unit cost of 133 (50%) agents increased faster than the average inflation rate during this period. Overall, approximately 58% of the increase in total spending during this period can be attributed to the introduction of novel agents.ConclusionsSpending associated with essential medicines grew substantially from 2011 to 2015, driven largely by the increased use of two expensive novel drugs used in treating hepatitis C. Approximately 22% of increased total spending during this period can be attributed to increases in per unit cost of existing drugs. These trends may limit patients’ access to essential drugs while also increasing healthcare system costs.


2006 ◽  
Vol 25 (5) ◽  
pp. 1240-1248 ◽  
Author(s):  
Jennifer Bowman ◽  
Amy Rousseau ◽  
David Silk ◽  
Catherine Harrison

2012 ◽  
Vol 10 (3) ◽  
pp. 182-182
Author(s):  
V. Fung ◽  
M. Price ◽  
A. Busch ◽  
W. Dow ◽  
B. Fireman ◽  
...  

2013 ◽  
Vol 31 (31_suppl) ◽  
pp. 275-275
Author(s):  
Sheetal Mehta Kircher ◽  
Michael Johansen ◽  
Matthew M. Davis

275 Background: Medicare Part D was designed to reduce out of pocket (OOP) costs for Medicare beneficiaries, but the extent to which this occurred for patients with cancer has not been measured. The aim of this study is to quantify the impact of Part D eligibility on OOP cost for prescription drugs and utilization for cancer patients. Methods: Differences-in-differences analyses were used to estimate the effects of Medicare Part D eligibility on OOP drug costs, by comparing 4 year periods before and after Part D implementation. Analyses were based on data from the publicly available Medical Expenditure Panel Survey, a nationally representative, all-payer sample of the United States non-institutionalized civilian population. Our analysis compared per-capita OOP burden between Medicare beneficiaries (age 65+) with cancer to near-elderly individuals age 55-64 years old with cancer. Results: 2,077 near-elderly individuals with cancer and 4,723 individuals with Medicare and cancer were included (total n=6,800), representing over 85 million people. Prescription drug coverage increased among individuals with Medicare from before Part D (39%) to after (65%); in contrast, prescription drug coverage among the near-elderly remained stable before vs. after Part D (82.4% vs. 81.4%). The mean per-capita OOP cost for Medicare beneficiaries with cancer before Part D was $1,111 (SE ±45) and decreased to $694 (±35) after implementation of Medicare Part D—a decline of 37%. Compared with changes in OOP drug costs for non-elderly patients with cancer over the same period, implementation of Medicare Part D was associated with a further reduction of $286 per person. OOP costs for cancer-associated drugs (i.e., antineoplastic, pain medications, anti-emetics) accounted for 6.5-11.1% of the total OOP cost with no significant trends between 2002-2010. Conclusions: The implementation of Medicare D has significantly reduced OOP prescription drug costs for seniors with cancer, beyond trends observed for younger patients. Considering prescription drugs for all medical conditions, cancer associated drugs compose a minority of the cost, highlighting that cancer patients have many comorbid conditions contributing to overall costs.


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