A challenge for any pharmaceutical or device company with a new product is getting favorable reimbursement and formulary status from managed care organizations. For a firm providing a new Beta Blocker, the solution from Medicom Digital was an economic analysis model that compares this drug with its competitors in terms of both the direct costs of the medications and treating side effects.
The model uses national average figures for Beta Blocker usage from claims data and calculates the following for any size organization:
• Percentage of existing and newly treated people receiving Beta Blockers for high blood pressure (candidates for therapy)
• Medication usage persistence percentages and time periods for each of the drugs
• Drug switching percentages and costs for each of the medications
• Percentages and costs for the six most common side effects for each of the medications
In addition, the model recognizes that shifting patients from one medication to another does not happen immediately, and that the most likely recipients of the new Beta Blocker are people starting to receive treatment for high blood pressure. The model thus examines the impact of placing this new medication on a formulary for both existing recipients of Beta Blockers and newly diagnosed patients, as well as the combined effect for both populations.
As an example of the model’s results, for a managed care plan with one million members and where 10% of existing patients and 5% of new patients currently receive the most expensive name brand Beta Blocker, placing one quarter of the existing patients and half of the newly diagnosed ones on the new Beta Blocker could save the plan an estimated $1,000,000 per year.
A challenge for any pharmaceutical or device company with a new product is getting favorable reimbursement and formulary status from managed care organizations. For a firm providing a new Beta Blocker, the solution from Medicom Digital is an economic analysis model that compares this drug with its competitors in terms of both the direct costs of the medications and treating side effects.
The model uses national average figures for Beta Blocker usage from claims data and calculates the following for any size organization:
· Percentage of existing and newly treated people receiving Beta Blockers for high blood pressure (candidates for therapy)
· Medication usage persistence percentages and time periods for each of the drugs
· Drug switching percentages and costs for each of the medications
· Percentages and costs for the six most common side effects for each of the medications
In addition, the model recognizes that shifting patients from one medication to another does not happen immediately, and that the most likely recipients of the new Beta Blocker are people starting to receive treatment for high blood pressure. The model thus examines the impact of placing this new medication on a formulary for both existing recipients of Beta Blockers and newly diagnosed patients, as well as the combined effect for both populations.
As an example of the model’s results, for a managed care plan with one million members and where 10% of existing patients and 5% of new patients currently receive the most expensive name brand Beta Blocker, placing one quarter of the existing patients and half of the newly diagnosed ones on the new Beta Blocker could save the plan an estimated $1,000,000 per year.
Demo Page: Treating Hypertension with Drug X
Learn more about our Health Economic Tools
