Preliminary Results from an Analysis of Medical and Retail Rx Spending February 29, 2016
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1 Prescription Drug Spending Trends in MN Preliminary Results from an Analysis of Medical and Retail Rx Spending ruary 29,
2 Overview Drugs spending and overall health care spending Trends in: Volume of prescriptions Volume of spending Cost per script Spending by therapeutic classes Price trends for select products Other ongoing research 2
3 Total Minnesota Health Care Spending Estimates $45 $40 Health Care Spending in Billions $35 $30 $25 $20 $15 $10 $5 $ Source: MDH/Health Economics Program, Health Care Spending and Projections in Minnesota, 2013, Legislative Report, forthcoming 3
4 Distribution of Minnesota Health Care Spending, 2013 Non-medical spending, 4.8% Other Medical Spending, Chemical 6.9% Dependency/Mental Health, 2.5% Other Professional Services, 3.4% Dental, 3.2% Uncategorized Spending, 1.4% Inpatient Hospital, 19.8% Prescription Drugs, 8.7% Outpatient, 15.0% Long Term Care (incl. Home Health), 15.4% Physician Services, 18.7% Source: MDH/Health Economics Program, Health Care Spending and Projections in Minnesota, 2013, Legislative Report, forthcoming 4
5 Trends Affecting Health Care Spending/ Projections Spending on drugs administered in medical settings play greater role Uptick in use of specialty drugs and biologics Price pressure: Generics that have been on the market Some legacy drugs for rare conditions New brand name drugs 5
6 Total Minnesota Health Care Spending Estimates and Projections $90 $80 Health Care Spending in Billions $70 $60 $50 $40 $30 $20 Estimates Projections $10 $0 Source: MDH/Health Economics Program, Health Care Spending and Projections in Minnesota, 2013, Legislative Report, forthcoming 6
7 Study Background Federal funding support from the Centers for Consumer Information & Insurance Oversight Experts from the University of MN PI: Steve Schondelmeyer PharmD PhD Employed Minnesota All Payer Claims Data (MN APCD) to take advantage of Comprehensive information for MN s population Detail on drug spending across setting, payers and drug delivery channels Additional information on the MN APCD: 7
8 Study Results 8
9 # of Claims (Millions) Number of Prescription Drug Claims in Minnesota Medical Benefit Rx Benefit 74.5 million 16.3 million 75.6 million 75.7 million 76.1 million 16.5 million 16.1 million 16.4 million 78.5 million 16.5 million million 59.1 million 59.6 million 59.7 million 62.1 million 10 - * Source: Analysis by the PRIME Institute, University of Minnesota using the Minnesota All Payer Claims Database (MN APCD) data from 2009 to 2013.
10 Spending on Prescription Drugs in Minnesota Spending in billions $8 $7 $6 $5 $4 $3 $2 Medical Benefit Rx Benefit $6.31 billion $2.14 billion $4.17 billion $6.61 billion $2.30 billion $4.32 billion $6.73 billion $2.46 billion $4.27 billion $7.09 billion $2.62 billion $4.47 billion $7.51 billion $2.77 billion $4.74 billion $1 $0 * Source: Analysis by the PRIME Institute, University of Minnesota using the Minnesota All Payer Claims Database (MN APCD) data from 2009 to 2013.
11 Million $ $450 Monthly Spending on Prescription Drugs $400 $350 $300 $250 $200 $150 $100 $50 $0 * Pharmacy Benefit Drug Spend Pharmacy Benefit Drug Spend (12 Month Rolling Average) Medical Benefit Drug Spend Medical Benefit Drug Spend (12 Month Rolilng Average) Source: Analysis by the PRIME Institute, University of Minnesota using the Minnesota All Payer Claims Database (MN APCD) data from 2009 to 2013.
12 Monthly Spending $ Average Cost per Drug Claim in Minnesota $200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 * $/Drug Claim in Pharmacy Benefit $/Drug Claim in Pharmacy Benefit (12 Month Rolling Average) $/Drug Claim in Medical Benefit $/Drug Claim in Medical Benefit (12 Month Rolling Average) Source: Analysis by the PRIME Institute, University of Minnesota using the Minnesota All Payer Claims Database (MN APCD) data from 2009 to 2013.
13 MN Drug Spending by Therapeutic Category, 2013 $ in Millions $0 $200 $400 $600 $800 $1,000 Endocrine & Metabolic Drugs Central Nervous System Drugs Cardiovascular Agents Analgesics & Anesthetics Respiratory Agents Anti-neoplastic Agents Gastrointestinal Agents Anti-Infective Agents Miscellaneous Products Topical Products Psych & Neurology Drugs Hematological Agents Stimulants, Obesity & Anorexia Neuromuscular Drugs Genitourinary Products Biologicals Nutritional Products Bundled & Unknown Drugs * $95 million $76 million $59 million $349 million $343 million $340 million $333 million $311 million $261 million $249 million $230 million Rx Benefit (Drug $) $445 million $425 million Medical Benefit (Drug $) $545 million $515 million $510 million $791 million 2013 Total Spending on Drugs: $7.51 billion 2013 Pharmacy Benefit Drug Spend: $4.74 billion 2013 Medical Benefit Drug Spend: $2.77 billion $1,627 million Source: Analysis by the PRIME Institute, University of Minnesota using the Minnesota All Payer Claims Database (MN APCD) data from 2009 to 2013.
14 Prices for Specific Prescription Drug Product 14
15 Prescription Drug Spending in Context Prescription drugs: Essential tools in the management/treatment of illness and acute health needs Can sometimes offset considerable long-term treatment expenses Are costly to develop and produce Can be prohibitively expensive for patients Pricing is an outgrowth of patent protection ket exclusivity, presumably to support innovation/grant protection against financial risk Single drug could distress payer budgets Value-based pricing (relative benefit)? 15
16 $ Cost/Claim (30-day) $4,000 $3,500 Herceptin (trastuzumab) IV Solution 440 mg [ ] as a Medical Benefit Claim in Minnesota: 2009 to 2013 $3,513 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $2, % Increase in Cost/Claim in 5 years $0 * Source: Analysis by the PRIME Institute, University of Minnesota using the Minnesota All Payer Claims Database (MN APCD) data from 2009 to 2013.
17 $ Cost/Claim (30-day) $160 $140 $120 $100 $80 $60 $40 $20 Prevnar (pneumococcal 13-Valent Conjugate) Vaccine [ ] as a Medical Benefit Claim in Minnesota: 2009 to 2013 $ % Increase in Cost/Claim in 4 years $152 $0 * Source: Analysis by the PRIME Institute, University of Minnesota using the Minnesota All Payer Claims Database (MN APCD) data from 2009 to 2013.
18 $ Cost/Claim (30-day) $1,200 $1,000 $800 Humulin R U-500 (concentrated) [ ] as a Pharmacy Benefit Claim in Minnesota: 2009 to % Increase in Cost/Claim in 5 years $1,016 $600 $400 $301 $200 $0 * Source: Analysis by the PRIME Institute, University of Minnesota using the Minnesota All Payer Claims Database (MN APCD) data from 2009 to 2013.
19 $ Cost/Claim (30-day) $250 Doxycycline Hyclate Tablets 100 mg [ ] as a Pharmacy Benefit Claim in Minnesota: 2009 to 2013 $200 $ % Increase in Cost/Claim in 5 years (& 1811% in 1 year) $181 $100 $50 $0 * $ Source: Analysis by the PRIME Institute, University of Minnesota using the Minnesota All Payer Claims Database (MN APCD) data from 2009 to 2013.
20 $ Cost/Claim (30-day) $35,000 Actimmune (interferon gamma-1b 100 mcg/0.5 ml) [ ] as a Pharmacy Benefit Claim in Minnesota: 2009 to 2013 $30,000 $25,000 $20,000 $15,000 $10, % Increase in Cost/Claim in 5 years $20,397 $5,000 * $0 $3, Source: Analysis by the PRIME Institute, University of Minnesota using the Minnesota All Payer Claims Database (MN APCD) data from 2009 to 2013.
21 $ Cost/Claim $180 $160 $140 $120 $100 EpiPen Jr. 2 pak (Epinephrine Soln Auto-injector, 0.15 MG/0.3ML) [ ] as a Pharmacy Benefit Claim in Minnesota: 2009 to % Increase in Cost/Claim in 5 years $161 $80 $60 $56 $40 $20 $0 * Source: Analysis by the PRIME Institute, University of Minnesota using the Minnesota All Payer Claims Database (MN APCD) data from 2009 to 2013.
22 Next Steps Summarize findings to date and upcoming work in a series of issue papers and data reports Characterize trends on drug use and expenditures also by: Role of brand & generic drug products Role of specialty drugs Settings for providing drugs Source of payment for prescription drugs If authorized, update analysis through 2014 and
23 Contact Information MDH Health Economics Program Minnesota All Payer Claims Data (MN APCD) Minnesota Health Care ket Statistics Contacts Stefan Gildemeister
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