Currently Viewing:
The American Journal of Managed Care July 2019
Changing Demographics Among Populations Prescribed HCV Treatment, 2013-2017
Naoky Tsai, MD; Bruce Bacon, MD; Michael Curry, MD; Steven L. Flamm, MD; Scott Milligan, PhD; Nicole Wick, AS; Zobair Younossi, MD; and Nezam Afdhal, MD
Currently Reading
Precision Medicines Need Precision Patient Assistance Programs
A. Mark Fendrick, MD; and Jason D. Buxbaum, MHSA
Real-Time Video Detection of Falls in Dementia Care Facility and Reduced Emergency Care
Glen L. Xiong, MD; Eleonore Bayen, MD, PhD; Shirley Nickels, BS; Raghav Subramaniam, MS, BS; Pulkit Agrawal, PhD; Julien Jacquemot, MSc, BSc; Alexandre M. Bayen, PhD; Bruce Miller, MD; and George Netscher, MS, BS
Impact of a Co-pay Accumulator Adjustment Program on Specialty Drug Adherence
Bruce W. Sherman, MD; Andrew J. Epstein, PhD; Brian Meissner, PharmD, PhD; and Manish Mittal, PhD
Heroin and Healthcare: Patient Characteristics and Healthcare Prior to Overdose
Michele K. Bohm, MPH; Lindsey Bridwell, MPH; Jon E. Zibbell, PhD; and Kun Zhang, PhD
Medicare’s Bundled Payment Model Did Not Change Skilled Nursing Facility Discharge Patterns
Jane M. Zhu, MD, MPP; Amol Navathe, MD, PhD; Yihao Yuan, MSc; Sarah Dykstra, BA; and Rachel M. Werner, MD, PhD
Number of Manufacturers and Generic Drug Pricing From 2005 to 2017
Inmaculada Hernandez, PharmD, PhD; Chester B. Good, MD, MPH; Walid F. Gellad, MD, MPH; Natasha Parekh, MD, MS; Meiqi He, MS; and William H. Shrank, MD, MSHS
Insurers’ Perspectives on MA Value-Based Insurance Design Model
Dmitry Khodyakov, PhD; Christine Buttorff, PhD; Kathryn Bouskill, PhD; Courtney Armstrong, MPH; Sai Ma, PhD; Erin Audrey Taylor, PhD; and Christine Eibner, PhD
Healthcare Network Analysis of Patients With Diabetes and Their Physicians
James Davis, PhD; Eunjung Lim, PhD; Deborah A. Taira, ScD; and John Chen, PhD
What Are the Potential Savings From Steering Patients to Lower-Priced Providers? A Static Analysis
Sunita M. Desai, PhD; Laura A. Hatfield, PhD; Andrew L. Hicks, MS; Michael E. Chernew, PhD; Ateev Mehrotra, MD, MPH; and Anna D. Sinaiko, PhD, MPP
Physician Satisfaction With Health Plans: Results From a National Survey
Natasha Parekh, MD, MS; Sheryl Savage; Amy Helwig, MD, MS; Patrick Alger, BS; Ilinca D. Metes, BS; Sandra McAnallen, MA, BSN; and William H. Shrank, MD, MSHS
Evaluation of Interdisciplinary Geriatric Transitions of Care on Readmission Rates
Nada M. Farhat, PharmD; Sarah E. Vordenberg, PharmD, MPH; Vincent D. Marshall, MS; Theodore T. Suh, MD, PhD, MHS; and Tami L. Remington, PharmD

Precision Medicines Need Precision Patient Assistance Programs

A. Mark Fendrick, MD; and Jason D. Buxbaum, MHSA
The competing strategies of patient assistance programs and co-pay accumulator adjustment programs create confusion and administrative burden for clinicians and patients, potentially reducing adherence to clinically indicated services and worsening patient outcomes.
Am J Manag Care. 2019;25(7):317-318
Consumer cost sharing for medical care in general, and specialty medications specifically, is high and getting higher. The average deductible for employer-sponsored single coverage increased by more than 250% between 2006 and 2016 and is now nearly $1500.1 Even after meeting their plan deductible, patients are often liable for high co-payments and coinsurance.

Cost sharing has potential to be a useful tool for purchasers to encourage prudent spending of healthcare dollars and reduce wasteful expenditures. However, cost sharing has historically been implemented as a blunt instrument, usually failing to distinguish between high- and low-value clinical services. There is a robust evidence base showing that individuals who are subject to high levels of cost sharing use less of both high- and low-value care in similar proportions. The higher the cost sharing, the greater the corresponding reduction in service use.2,3 Not surprisingly, cost-related underuse of evidence-based services disproportionally impacts poorer Americans and those with chronic conditions.4

Patient Assistance Programs

In response to the growing financial burden resulting from consumer cost sharing, patient assistance programs (PAPs) have been established to help patients pay for their medical care. PAPs may be delivered in several forms, including co-payment assistance cards (commonly referred to as “co-pay cards”), manufacturer assistance programs, and grants from charitable patient assistance foundations. Co-pay cards are typically targeted to individuals with commercial insurance coverage; individuals enrolled in Medicare, Medicaid, or other federal healthcare programs cannot use these programs.

Although PAPs may serve to increase access to otherwise costly prescription medications, some payers, purchasers, and researchers have expressed concerns that co-pay cards undermine incentives for clinicians and patients to respect plan formularies, thereby unnecessarily increasing expenditures. Use of co-pay cards for branded medications when generic equivalents are available has drawn particularly harsh attention.

Co-pay Accumulator Adjustment Programs

Until recently, co-pay assistance funds counted toward meeting the patient’s deductible, allowing some individuals to reach their plan deductible after only nominal out-of-pocket (OOP) expenditure. To mitigate this strategy that potentially would result in more patients reaching their deductible, pharmacy benefit managers (PBMs) have started to implement co-pay accumulator adjustment programs (CAAPs) that ensure that any pharmaceutical manufacturer subsidy toward patients’ OOP medication cost is not credited toward their deductible. It has been estimated that nearly 60% of covered lives in commercial health plans are covered by payers that have implemented a CAAP.5

Because most co-pay cards have an annual limit on the amount of assistance that an individual patient may receive, many patients under a CAAP are at risk of experiencing “co-pay surprise” midway through the plan year when the co-pay card’s maximum assistance amount has been reached but the plan deductible has not been satisfied. In this issue of The American Journal of Managed Care®, Sherman and colleagues report that the use of a CAAP for specialty medications treating autoimmune diseases was associated with significant reductions in medication adherence, a measure that often predicts adverse clinical events leading to downstream costs.6

The competing strategies of PAPs and CAAPs create confusion and administrative burden for clinicians and patients, potentially reducing adherence to clinically indicated services and worsening patient outcomes.


 
Copyright AJMC 2006-2019 Clinical Care Targeted Communications Group, LLC. All Rights Reserved.
x
Welcome the the new and improved AJMC.com, the premier managed market network. Tell us about yourself so that we can serve you better.
Sign Up