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1 Value Based Designs Charles M. Cutler, MD, MS National Medical Director Aetna, Inc.

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Value Based

DesignsCharles M. Cutler, MD, MS

National Medical DirectorAetna, Inc.

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Agenda

Current state of affairs Why medication

adherence matters

Barriers to adherence Overcoming the barriers

Next steps

Questions

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Medication adherence “The degree to which the

 person’s behavior corresponds

with the agreed recommendations

 from a health care provider.”

 –  World Health Organization

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22% of U.S. patients take less of the medication than is prescribed

 American Heart Association: Statistics you need to know.

http://www.americanheart.org/presenter.jhtml?identifier=107 Accessed November 21, 2007.

Medication adherence

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Statin adherence as measured by

 proportion of days covered (PDC) 

Below 80% PDC was considered suboptimal

adherence.

Within 3 months, mean PDC had fallen to 79%.

 After 3 months, 40% of patients had suboptimal

adherence.

 After 12 months, 61% had suboptimal adherence. 

Benner JS, Glynn RJ, Mogun H, Neumann PJ, Weinstein

MC, Avorn J. Long-term persistence in use of statin

therapy in elderly patients. JAMA 2002;288:455-461

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Adherence to statins after two years,

 by condition 40%

36%

24%

0%

10%

20%

30%

40%

50%

 Acute coronarysyndrome

Chronic coronaryartery disease

Primary prevention   P  e  r  c  e  n   t  o   f  p  a   t   i  e  n   t  s  c  o  n   t   i  n  u  a   l   l  y

  r  e   f   i   l   l   i  n  g   R  x

Jackevicius CA, Mamdani M, Tu JV. Adherence with statin

therapy in elderly patients with and without acute coronary

syndromes. JAMA 2002;288:462-467

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Why adherence matters 

Results of failure to adhere to prescribed medications:

Increased hospitalization

Poor health outcomes Increased costs

Decreased quality of life

Patient deathBenner JS, Glynn RJ, Mogun H, Neumann PJ, Weinstein

MC, Avorn J. Long-term persistence in use of statin

therapy in elderly patients. JAMA 2002;288:455-461

“Of all medication-related hospital admissions in

the United States, 33 to 69 percent are due to poor

medication adherence, with a resultant cost of

approximately $100 billion a year.” 

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Statin therapy adherence demonstrated

to improve three specificoutcomes 

37%   38%

46%

32% 31%

37%

0%

5%

10%

15%

20%

25%

30%

35%40%

45%

50%

CV Death Non-Fatal MI Revascularization

   P  e  r  c  e  n

   t   D  e  c  r  e  a  s  e   i  n   O  c  c  u  r  a  n

  c  e  s

Compliant Entire CohortWest of Scotland Coronary Prevention Study

(WOSCOPS). Compliance and adverse event

withdrawal:their impact. Eur Heart J 1997;18:1718-1724

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Poor adherence increases

total health care costs

Smith DL. The effect of patient non-

compliance on health care costs.Medical Interface 1993:April; 74-84

Hypertensive Patients and Total Annual Costs

$4,850$6,400

$10,500

$0

$2,000

$4,000

$6,000

$8,000$10,000

$12,000

Received meds,

100% compliant

Purchased some,

but took all

purchased

Purchased some,

taken irregularly

   A  n  n  u  a   l   p  e

  r  -  p  a   t   i  e  n   t   h  e  a   l   t   h  c  a  r

  e  c  o  s   t  s

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Why don’t patients adhere to their

medication therapy?  Complex therapies

Side Effects

Failure to understand the need for themedication

High out-of-pocket costs

Benner JS, Glynn RJ, Mogun H, Neumann PJ, Weinstein

MC, Avorn J. Long-term persistence in use of statin

therapy in elderly patients. JAMA 2002;288:455-461

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Overcoming barriers to adherence Health plan pays member copay

Reduces member out-of pocket costs

Emphasizes the importance of continuingtherapy

Education and outreach

Explains the need for medication therapy

Breaks down complex therapies intomanageable parts

Offers strategies for coping with side effects

Benner JS, Glynn RJ, Mogun H, Neumann PJ, Weinstein

MC, Avorn J. Long-term persistence in use of statin

therapy in elderly patients. JAMA 2002;288:455-461

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The copay effect   Adherence with statin therapy consistently

found to be far from optimal even in

populations with full drug insurance coverage.

 Already bad adherence to newly initiated statintherapy was further reduced by 5 percentage

points as a consequence of a fixed copayment

policy and a subsequent coinsurance policy.

Schneeweiss S, Patrick AR, Maclure M, et al.

 Adherence to statin therapy under drug cost

sharing in patients with and without acute

myocardial infarction. Circulation 2007; DOI:

10.1161/circulationaha.106.665992

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Investment in medication adherence can

lead to dramatic reductions in overallcost of care 

Sokol M et al. Impact of Medication Adherence on Hospitalization

Risk and Healthcare Cost. Medical Care.Volume 43, Number 6, June 2005

Outcome is significantly higher than outcome for 80-

100% adherence group (P <0.05). Differences weretested for medical cost and hospitalization risk.

Rx $ 

Medical $ $8,812

$6,959$6,237 $5,887

$3,808

$55

$165$285 $404

$763

$0

$2,000

$4,000

$6,000

$8,000

$10,000

1-19% 20-39% 40-59% 60-79% 80-100%

Diabetes Medication Level of Adherence (% days supply/year)

   A  v  e  r  a  g  e

   h  e  a   l   t   h  c  a  r  e  e  x  p  e  n   d   i   t  u  r  e  s  p  e  r

  y  e  a  r   (   $   )

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2008 Aetna consumer research results

on value-based insurance design  Surveyed 1,000 individuals with 5 common conditions --hypertension, hyperlipidimia, asthma, diabetes, and health disease.

61% of individuals found the value-based insurance design (VBID)

concept “extremely” or “very appealing”. 

 Attractiveness of VBID seems to vary by type of condition a personhas --

Strongest among individuals with diabetes and asthma

“Mid range" for those with hypertension and heart disease; and

Lower among individuals with hyperlipidimia.

 Appeal did not vary by income

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2008 Aetna consumer research results

on value-based insurance design 

 Appeal of VBID seems to decline with increasing age – 

about 70% of those 40 or younger find the VBID idea extremely or very

appealing;

Compared to less than 60% for those 51-60 age, and less than 50% for

those 61-64.

Those who find the concept appealing state financial benefits of lowered or

eliminated copays as the number one reason.

Results suggests that VBID will likely improve Rx compliance. 86% state they would "always" take their medication if they were

participating in a value based disease management program, a 10

percent point improvement

Compared to 78% who state they always take their medications

currently.

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Marriott International Study (2005)   Although there were previous Value Based Studies, this was one of

the first controlled studies and the first in a Disease Managementcontext.

Pre-post study with a comparable control group

Outcomes measured

Medication adherence (medication possession ratio)

Cost of medication

Cost of non-Rx health care services

Medication adherence increase significantly for 4 of 5 targeted drug

categories

Members out-of-pocket costs for brand-name targeted drugs

decreased 27% while control group member’s cost fell only 1% 

Prescription drug expenditures rose significantly

Non-Rx medical costs decreased by roughly the same amount

Overall costs for healthcare did not change significantly

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Aetna Healthy Actions –  Rx Savings

our value-based Rx plan designs 

CareEnginePowered : copay

discount according

to evidence-based

identification for

certain chronic

conditions

Disease

Management

Engagement :

copay discount

according to

CareEngine and

participation in Aetna Health

Connections 

Drug ClassDriven: copay

discount based on

member drug class

Supported by Aetna’s focus on evidence-based medicine and

the Brigham and Women’s study 

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Rx Savings offers a targeted copay

solution Reduce copays selectively

for members with chronic

conditions

Motivate members

requiring but not receiving

essential drugs to begin

taking them

Motivate members alreadytaking essential drugs to

remain compliant

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Member fills Rx andpays reducedcopay amount atthe point-of-service

CareEngine-powered, Value-based Design

Report generated by CareEngine

contains eligible members,drug classes, prescriptionand patient status

Member copayment level

is applied after first fillat pharmacy

Pharmacyadjudicatesmember Rx

OR

Member claims data - history, medical claims, labs, pharmacy and demographic data

is fed into the Aetna CareEngine ®

SITUATION A: 

Member already taking the Rx

ACTION: Member receives targeted

comm unicat ion RE: reducedcop ay available  

SITUATION B: 

Member not already taking the Rx

ACTION: Member and provid er receivetargeted communicat ions RE:of reduced copay opportuni ty

Aetna Health ActionsSM  –  Rx Savings 

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Choudhry Meta-analysis: Use of

Medications Post-MIBasecase 

CurrentCoverage  Full

coverage  Difference Average 3-Year Event Rates (%) Fatal MI

 3.1

 2.1

 1.0

 Fatal stroke  0.3  0.2  0.1 Fatal CHF  0.2  0.1  0.1 Non-fatal MI  33.4  20.3  13.1 Non-fatal stroke 4.0  2.8  1.2 Non-fatal CHFreadmission  31.8  25.2  6.6 Average Insurer’s Costs Per Patient ($)* Drug expenditure  644  1,440  796 Event-relatedcosts  21,498  14,729  -6,770

TOTAL  22,428  16,808  -5,974 

*Health Affairs 2007; 26: 186

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Rationale for Selection of Post

Myocardial Infarction Population• Rationale

 – The analysis of the Harvard model suggests that

covering combination drugs for patients who have had

a prior Myocardial Infarction will save both lives and

money (Health Affairs, January / February 2007)

 – Post myocardial infarction population selected due to

the sequelae of medication adherence is severeregarding morbidity and mortality

 – Evidence base is clear on the specific medications of

value to this population

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Proposed Research Study

•  Aetna / Harvard Proposal

 –  Aetna to participate with Harvard in a study to

formally test the hypothesis that by removing

financial barriers (co-pay, co-insurance anddeductibles) for certain conditions we would:

• Increase medication adherence

• Improve clinical quality

• Decrease medical costs

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Study Description

• Quality improvement initiative partnering with Harvard:

 – 3 year, 2 arm study with a control group and an

intervention group

 – Control group - no change to drug insurance coverage

 – Intervention group - zero co-payment for ACEIs / ARBs,

Statins and Beta Blockers

 – Collaborate with plan sponsors regarding communicationto members enrolled in the study

 – Randomization will occur at the employer level

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Inclusion / Exclusion Criteria

• Members must have Aetna Medical and Pharmacy

• Both FI and SI Funding arrangements will be

included

• Excludes Medicare population

• Excludes members that have HSA / HRAarrangements

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Outcomes Assessment

• Drug use and adherence

 – Clinical

» composite of death from cardiovascular causes,

» non-fatal recurrent infarction,

» non-fatal stroke,

» non-fatal congestive heart failure readmission

• Economic – health care costs incurred by the insurer (e.g., drug

costs, event-related costs, cost of ongoing healthcare, costs of lost productivity)

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Questions?

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Please contact:

Ed Pezalla

860-273-7719

[email protected]

Chuck Cutler

215-775-3610

[email protected]

For Additional Information