BACKGROUND: Medicare Part D has a drug coverage gap, which imposes risks for discontinuing medications, particularly in mental health disorders where drug costs are high. However, some beneficiaries have generic drug coverage in the gap. OBJECTIVES: To examine the health outcomes and cost-effectiveness of generic-drug coverage compared with no gap coverage in patients with bipolar disorder and schizophrenia. STUDY DESIGN: Markov model-based cost-effectiveness analysis using identical hypothetical cohorts to examine drug coverage strategies. METHODS: The incremental cost-effectiveness of Part D coverage strategies was estimated, using differences in medical costs and quality-adjusted life years between plans. Coverage strategy-specific costs and hospitalization rates were obtained from 2007 Medicare data, adjusted for age, sex, race, and health status. RESULTS: When comparing generic-only coverage with no gap coverage, generic-only coverage cost less and was more effective than no gap coverage, due mainly to lower hospitalization rates. In sensitivity analyses, generic-only coverage continued to be favored over no gap coverage unless generic coverage costs increased > 3% in bipolar disorder and > 5% in schizophrenia; generic coverage in the gap was also favored in probabilistic sensitivity analyses. CONCLUSIONS: In Medicare Part D, generic drug coverage was cost saving compared with no coverage in bipolar disorder and schizophrenia while improving health outcomes. Policy makers and insurers might consider generic-only coverage, rather than no gap coverage, to both conserve healthcare resources and improve health.
BACKGROUND: Medicare Part D has a drug coverage gap, which imposes risks for discontinuing medications, particularly in mental health disorders where drug costs are high. However, some beneficiaries have generic drug coverage in the gap. OBJECTIVES: To examine the health outcomes and cost-effectiveness of generic-drug coverage compared with no gap coverage in patients with bipolar disorder and schizophrenia. STUDY DESIGN: Markov model-based cost-effectiveness analysis using identical hypothetical cohorts to examine drug coverage strategies. METHODS: The incremental cost-effectiveness of Part D coverage strategies was estimated, using differences in medical costs and quality-adjusted life years between plans. Coverage strategy-specific costs and hospitalization rates were obtained from 2007 Medicare data, adjusted for age, sex, race, and health status. RESULTS: When comparing generic-only coverage with no gap coverage, generic-only coverage cost less and was more effective than no gap coverage, due mainly to lower hospitalization rates. In sensitivity analyses, generic-only coverage continued to be favored over no gap coverage unless generic coverage costs increased > 3% in bipolar disorder and > 5% in schizophrenia; generic coverage in the gap was also favored in probabilistic sensitivity analyses. CONCLUSIONS: In Medicare Part D, generic drug coverage was cost saving compared with no coverage in bipolar disorder and schizophrenia while improving health outcomes. Policy makers and insurers might consider generic-only coverage, rather than no gap coverage, to both conserve healthcare resources and improve health.
Authors: Yuting Zhang; Judith R Lave; Julie M Donohue; Michael A Fischer; Michael E Chernew; Joseph P Newhouse Journal: Med Care Date: 2010-05 Impact factor: 2.983
Authors: W Jiang; J Alexander; E Christopher; M Kuchibhatla; L H Gaulden; M S Cuffe; M A Blazing; C Davenport; R M Califf; R R Krishnan; C M O'Connor Journal: Arch Intern Med Date: 2001 Aug 13-27
Authors: Leslie Citrome; Anna Eramo; Clement Francois; Ruth Duffy; Susan N Legacy; Steve J Offord; Holly B Krasa; Stephen S Johnston; Alice Guiraud-Diawara; Siddhesh A Kamat; Patricia Rohman Journal: Neuropsychiatr Dis Treat Date: 2015-12-16 Impact factor: 2.570