P
harmacy expenses through YTD June 2017 are trending about 5.2% vs. 2016 as compared to the CHIA (Center for Health Information Analysis) Massachusetts target goal of < 3.1%. Since about 20% of TME (
Total Medical Expenses, the actual amount of spend on hospital admissions, MD appointments, lab, radiology, pharmacy etc
.) are medications, NEPHO continues to focus on opportunities to minimize these rising costs.
Reduction of TME is a major focus for 2017/2018 for all NEPHO risk contracts. It should be noted currently about 44% of all pharmacy expenses are generated by OOPHO (out-of-PHO) prescribers, hence the importance of keeping patients within the NEPHO network.
We welcome any ideas or suggestions you have to reduce pharmacy TME!
Cost Savings Idea Program Follow-up
In 2016 and 2017 the NEPHO Board along with the Risk Sharing Committee implemented an incentive program for specialty providers to reduce TME called "Cost Savings Ideas" program. Specialty providers were asked to submit "Cost Savings Ideas" focusing on the following areas:
- pharmacy costs
- laboratory testing
- imaging studies
Over 200 ideas were submitted by NEPHO specialists and the following pharmacy related ideas were accepted by the Risk Sharing Committee for 2017:
- Increase utilization of generic topical corticosteroids, acne topicals and antipsoriatic medications (Dermatology)
- Increase utilization of cost-effective ophthalmic drops and cost-effective retinal injectables for macular degeneration (Ophthalmology)
Through June 2017 there were savings
in areas such as topical corticosteroids, acne topicals and antipsoriatic agents written by NEPHO Dermatology specialists. Both topical corticosteroids and antispsoriatic agents increased in costs for those written by non-specialists and OOPHO providers.
Ophthalmic drops increased in costs for this time period vs. 2016 for all prescribers, but there was a noted decrease in costs for VEGF Inhibitor injectables. Final evaluation of the Cost Savings Ideas program will be evaluated and shared at the end of 2017.
Check out some of the tools comparing preferred vs. non-preferred agents generated during discussions with both dermatology and ophthalmology specialty providers:
We welcome any ideas or suggestions you have to reduce pharmacy TME! Send your thoughts and suggestions to:
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