specialty*pharmacyamcpwc2015.weebly.com/uploads/4/2/9/7/42977587/specialty...source: kaiser/hret...
TRANSCRIPT
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Specialty Pharmacy
Vinay R. Panchal, PharmD, BCPS Clinical Pharmacist, Medica:on Policy
Blue Shield of California
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Objec:ves • Obtain a general understanding of specialty pharmaceu:cals
• Understand the impact and trends of specialty pharmaceu:cals over the past few years
• Describe the value specialty pharmacy and products bring to the market
• Understand the challenges of specialty pharmaceu:cals for managed care organiza:ons
• Understand how specialty pharmaceu:cals and their management affect pa:ents
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What is a specialty medica:on?
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Defini:on of Specialty Pharmaceu:cals
• Lack of universal defini:on • Can include high cost injectable, infused product, oral
agent or inhaled medica:on • May require close supervision, monitoring and
handling requirements • Can be administered at home, MD office, infusion
center or outpa:ent hospital • Medicare’s Part D defini:on for specialty: any drug
for which the nego:ated monthly price is $600 or more
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URAC: Specialty Drug Defini:on URAC: U:liza:on Review Accredita:on Commission – a nonprofit org well known for promo:ng health care quality
• Product requiring special handling and administra:on
• Unique inventory management • A high level of pa:ent monitoring • More intense support than conven:onal therapies
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IMS Health: Specialty Drug Defini:on • Drug must have 4 or more of the following:
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Commonly Targeted Disease States • Pulmonary arterial hypertension
• Mul:ple sclerosis • Hepa::s C • Rheumatoid arthri:s • Psoriasis • RSV • Oncology
• Blood disorders • Cys:c fibrosis • Crohn’s disease • Growth hormone deficiency
• Hemophilia • HIV/AIDS was:ng • Infer:lity
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Ques:on 1 • True or False: Does a specialty drug need to treat a specialty condi:on?
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Ques:on 1 • True or False: Does a specialty drug need to treat a specialty condi:on?
– False: There are specialty drugs on the market that do not necessarily treat a specialty condi:on
– Example: • Medicare’s Part D defini:on for specialty: any drug for which the nego:ated monthly price is $600 or more
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What is the impact of specialty medica:ons on the health care
system?
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Impact of Specialty Products
• Specialty drugs have been the fastest growing segment of drug spend under the pharmacy benefit
• There are currently over 5,000 new medica:ons in the biopharmaceu:cal pipeline
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Basic “Per Member Per Year” Equation
Where . . . Unit Cost = Average cost per prescription
Volume = Total number of prescriptions during year
Member-Year = Number of eligible members per year
$PMPY = (Unit Cost) (Volume)
(Member-Year)
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2014 Pharmacy Drug Spend
- Less than 1% of patients use specialty drugs, but they represent about 1/3 of the total drug spend
- If current trends continue, it will represent more than 50% by 2018
Source = Express Scripts’ 2014 Drug Trend Report
2014 Total Drug Spend =$373.9 billion
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Change in Specialty Drug Spend
Source: IMS Health, National Sales Perspectives, Dec 2014
Specialty drugs account for 33% of spending which is up from 23% five years ago
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FDA Drug Approvals
Source = Express Scripts’ 2014 Drug Trend Report
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Therapy Classes Maturing
Source = Express Scripts’ 2014 Drug Trend Report
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Leading Specialty Therapy Classes
Source = Express Scripts’ 2014 Drug Trend Report
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Top 10 Specialty Drugs in 2014
Source: Express Scripts Drug Trend Report: Top 10 Specialty Therapy Drugs
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Specialty Pipeline: Extensive Orphan Drug Development
There are currently over 5,000 new medications in the biopharmaceutical pipeline
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Ques:on 2 2. Which of the following statements are TRUE
regarding specialty medica:ons? a) The use and cost of specialty drugs is rising b) Inflammatory condi:ons, Hepa::s C, Mul:ple
Sclerosis, and Oncology are the top prescribed condi:ons of specialty medica:ons
c) The number of specialty drugs on the market is increasing
d) All of the above statements are true
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Ques:on 2 2. Which of the following statements are TRUE
regarding specialty medica:ons? a) The use and cost of specialty drugs is rising b) Inflammatory condi:ons, Hepa::s C, Mul:ple
Sclerosis, and Oncology are the top prescribed condi:ons of specialty medica:ons
c) The number of specialty drugs on the market is increasing
d) All of the above statements are true
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What is a specialty pharmacy and what do they do?
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Specialty Pharmacy and Programs • Specialty pharmacy is oden a subset of retail pharmacy in managed care who “specialize” in specialty pharmaceu:cals
• Programs may include prior authoriza:ons to ensure clinically appropriate and cost-‐effec:ve use of treatments when certain criteria is met
• Incorporate evidence-‐based guidelines, dosing, discon:nua:on guidance, and monitoring
• Many specialty pharmacies have disease state (ex. Hep C and oncology) management programs specific for condi:ons that are treated with specialty medica:ons
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Components of Specialty Programs
• Refill reminders • Adherence counseling / monitoring • Pa:ent educa:on • Pa:ent assistance programs • Delivery coordina:on • Insurance verifica:on / coordina:on • Clinical interven:ons
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Specialty Pharmacy Providers • Payers oden contract specifically with specialty pharmacies to provide specialty pharmaceu:cal services to their members
• Many payers own their own specialty pharmacy – Express Scripts – CuraScript Specialty Pharmacy and Accredo Specialty Pharmacy
– Humana – RightSourceRx Specialty Pharmacy – Caremark – Caremark Specialty Pharmacy
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Ques:on 3 3. Which of the following are TRUE regarding
Specialty Pharmacies?
a) Specialty Pharmacies help coordinate care between the member and their insurance company
b) Specialty Pharmacies make clinical interven:ons and monitor for pa:ent adherence
c) Hepa::s C and Oncology agents are commonly targeted disease states by specialty pharmacies
d) All of the above statements are true
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Ques:on 3 3. Which of the following are TRUE regarding
Specialty Pharmacies?
a) Specialty Pharmacies help coordinate care between the member and their insurance company
b) Specialty Pharmacies make clinical interven:ons and monitor for pa:ent adherence
c) Hepa::s C and Oncology agents are commonly targeted disease states by specialty pharmacies
d) All of the above statements are true
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What are some of the challenges Managed Care
Organiza:ons (MCOs) face to handle the high cost specialty
medica:ons?
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Medical vs. Pharmacy Medica:ons • Medical Benefit Medica:on: obtained by and given by a health care provider
• Pharmacy Benefit Medica:on: obtained by the member for self administra:on
• Some medica:ons can be under the pharmacy or medical benefit. It is up to Managed Care Organiza:ons (MCOs) to balance the two.
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Challenges in MCOs
• Billing systems -‐ integra:on of medical and pharmacy claims
• U:liza:on management • Drug coding-‐ NDC vs J code
Debbie Stern and Debi Reissman, “Specialty Pharmacy Cost Management Strategies of Private Health Care Payers,” Journal of Managed Care Pharmacy,
November/December 2006. hlp://www.amcp.org/data/jmcp/Nov-‐Dec06JMCP1.pdf
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Benefit Designs • Cause of much confusion • Medical benefit vs. pharmacy benefit
– Each MCO can design and deliver their own product and services
• Has led to addi:onal formulary :ers – Tier 4, Tier 5 and Tier 6 for example
• Tradi:onally associated with higher co-‐pays or co-‐insurances
• Many plans are moving towards new benefit designs for specialty drugs and therapies, including a “specialty formulary”
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Benefit Coverage of Specialty Drug
Source: EMD Serono Specialty Digest 10th edition
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Benefit Designs • Cause of much confusion • Medical benefit vs. pharmacy benefit
– Each MCO can design and deliver their own product and services
• Has led to addi:onal formulary :ers – Tier 4, Tier 5 and Tier 6 for example
• Specialty drugs are tradi:onally associated with higher co-‐pays or co-‐insurances
• Many plans are moving towards new benefit designs for specialty drugs and therapies, including a “specialty formulary”
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Trends in pharmacy copays and coinsurance
Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits: 2014
34
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Commercial RX Benefit: Use of Specialty Drug Cost Share Tiers
Source: EMD Serono Specialty Digest 10th edition
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Benefit Designs • Cause of much confusion • Medical benefit vs. pharmacy benefit
– Each MCO can design and deliver their own product and services
• Has led to addi:onal formulary :ers – Tier 4, Tier 5 and Tier 6 for example
• Tradi:onally associated with higher co-‐pays or co-‐insurances
• Many plans are moving towards new benefit designs for specialty drugs and therapies, including a “specialty formulary”
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Preferred Products: commercial (2012-‐2013)
Source: EMD Serono Specialty Digest 10th edition
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Ques:on 4 Which of the following statements regarding benefit design are TRUE:
a) Co-‐pays and co-‐insurances for specialty drugs are typically higher than non-‐specialty medica:ons
b) Managed Care Organiza:ons can help contain cost through preferred specialty medica:ons via rebates from the drug manufacturers
c) Managed care organiza:ons must have all their oncology agents under the pharmacy benefit
d) A &B only
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Ques:on 4 Which of the following statements regarding benefit design are TRUE:
a) Co-‐pays and co-‐insurances for specialty drugs are typically higher than non-‐specialty medica:ons
b) Managed Care Organiza:ons can help contain cost through preferred specialty medica:ons via rebates from the drug manufacturers
c) Managed care organiza:ons must have all their oncology agents under the pharmacy benefit
d) A &B only
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What about the pa:ents?
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Impact on Pa:ents • Federal Employees Health Benefits Program – survey of 8 million members in 2008 – Specialty expenditures per member increased by 11.1% from 2004 to 2008
– Median household income of $50,233 – An individual on 1 specialty medica:on had an OOP expense of up to 9% of their household’s total gross income
• Poten:al impact of shiding costs to pa:ents with specialty drugs: – Inability or refusal to pay for medica:ons leading to decreased compliance may impact medical expenses and hospital costs
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Monitoring for Adverse Reac:ons
• Prescrip:on drug safety is key with specialty pharmaceu:cals • Problems arise when a drug offers significant therapeu:c
benefits but also carries challenging health or safety risks • FDA Mandated Risk Evalua:on and Mi:ga:on Strategy
(REMS) • Many biologics and new therapies are subject to REMS
• Includes pa:ent registries, ongoing pa:ent monitoring, and cer:fica:on for prescribers and pharmacies
• Specialty pharmacies have a high level of pa:ent and physician interac:on and specially trained therapy teams to assist with mee:ng these requirements
• Short Cycle / Par:al Fill Programs – ini:ated by MCOs
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Par:al Fill Programs
Source: EMD Serono Specialty Digest 10th edition
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Par:al Fill Program Goals
Source: EMD Serono Specialty Digest 10th edition
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Ques:on 5 5. Which of the following statements are TRUE? a) The cost of specialty medica:ons is increasing for
pa:ents poten:ally leading to non-‐adherence b) Par:al Fill programs are aimed to reduce cost,
improve adherence, and manage side effects c) The Risk Evalua:on and Mi:ga:on Strategy (REMS)
is mandated by the FDA d) All of the above statements are true
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Ques:on 5 5. Which of the following statements are TRUE? a) The cost of specialty medica:ons is increasing for
pa:ents poten:ally leading to non-‐adherence b) Par:al Fill programs are aimed to reduce cost,
improve adherence, and manage side effects c) The Risk Evalua:on and Mi:ga:on Strategy (REMS)
is mandated by the FDA d) All of the above statements are true
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Summary • Specialty pharmacy is a growing part of the pharmacy industry
• Specialty pharmacy providers con:nue to develop programs and value-‐added services to beler manage pa:ents
• Payers con:nue to develop new strategies to manage the high costs of specialty drugs
• Pa:ents are oden affected by the variance in coverage and cost shares
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References • Prime Therapeu:cs LLC. 2011 drug trend insights. 8/11. Available at: hlp://
www.primetherapeu:cs.com/PDF/2011PrimeDrugTrendInsights.pdf. Accessed September 14,2011.
• Debbie Stern and Debi Reissman, “Specialty Pharmacy Cost Management Strategies of Private Health Care Payers,” Journal of Managed Care Pharmacy, November/December 2006. hlp://www.amcp.org/data/jmcp/Nov-‐Dec06JMCP1.pdf. Accessed February 3, 2010.
• Gleason PP, Starner CI, Gunderson BW, Schafer JA, Sarran HS. Associa:on of Prescrip:on Abandonment with Cost Share for High-‐Cost Specialty Pharmacy Medica:ons. Journal of Managed Care Pharmacy 2009;15(8)648-‐58. Specialty pharmacy's role in REMS, FDA's new drug safety program. Formulary. 2009;44:300–308.
• FMCP Specialty Pharmacy Ini:a:ve: Phase I Discovery & U.S. Environmental Scan. October 2009. www.fmcpnet.org. Accessed February 1, 2010.
• 2014 and 2015 AMCP conferences • The Biopharmaceu:cal Industry: Crea:ng Research, Progress and Hope.
hlp://www.phrma.org/about/biopharmaceu:cal_sector. Accessed February 1, 2015.
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New brand spending shided to specialty
Source: IMS Health, National Sales Perspectives, Sept 2014