Transcript Slide 1

C14: Drug Shortages
and the Impact on
Managed Care Pharmacy
Sherry L. Andes, PharmD, BCPS, BCPP, BCACP, PAHM
Sr. Drug Information Specialist
SXC Health Solutions
Conflict of Interest Disclosure
I, Sherry Andes, declare no conflicts of
interest or financial interests with any
pharmaceutical manufacturers,
medical device company, or in any
product or service mentioned in this
program, including grants, employment,
gifts, stock holding, and honoraria with
the exception of:
‒ Shire stock in 401k plan
‒ Receipt of consulting fees from Novo Nordisk and
Daiichi Sankyo
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Objectives
Outline the challenges and potential impacts associated
with drug shortages
Review the prevalence and scope of drug shortages
Discuss factors managed care organizations should
consider/evaluate with respect to drug shortages
Present examples of drug shortages that have affected
managed care organizations and actions taken
Review AMCP actions and resources relating to drug
shortages
Identify resources for drug shortage-related information
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Drug Shortages in the News
Pharmaceuticals
Inside America’s Drug Shortage
The first in a two-part series investigating
why critical prescription drugs are in short
supply in the U.S.
Time. 2012 March 19
http://healthland.time.com/2012/03/19/w
here-have-all-our-drugsgone/#ixzz1rHOxvdjH
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Drug Shortage Challenges
Need for increased communication between stakeholders,
including reasons for shortages and real-time updates on
affected drugs
Need to examine the gray market impact, including
drastically increased pricing for shorted drugs
Increased incidents of medication errors with the use of
alternative therapies
Need for standard alternative therapy guidelines
Complex economic issues with shortages
Need for a more stable supply chain
Call for a more standardized allocation process
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FDA CDER Drug Shortage Public Workshop. September 26, 2011.
Available at: http://www.fda.gov/downloads/Drugs/NewsEvents/UCM275801.pdf
Potential Impact of Drug Shortages
on Managed Care
Therapy disruption or delay
Stockpiling/hoarding occurrences
Increased risk of adverse events
Increased risk of medication errors
Increased costs
Berger JE. AJPB. 2012 Jan/Feb; 4(1):10-11.
ASHP. Am J Health-Syst Pharm. 2009;66:1399-1406.
Le P et al. Journal of Generic Medicines. 2011;8(4):210-218.
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Drug Shortage Prevalence
Shortages as a % of FDA-Approved and Marketed Active
Ingredients
Approved
8.5%
Discontinued
1.1%
11.0%
Marketed
12.2%
NDA or ANDA
BLA-CDER
6.1%
BLA-CBER
2.0%
18.4%
Vaccines
0%
5%
10%
15%
Prevalence of drug shortages ~ 11% of FDA-approved/marketed active ingredients
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Le P, et al. Journal of Generic Medicines. 2011;8(4):210-218.
20%
Scope of Drug Shortages
Route of Administration
2%
4%
11%
Product Type
Generic
Brand
1%
1%
1%
Injectables
83%
Other Branded
Generic
Orals
15%
82%
Inserts /
Implants
Rectals &
Topicals
Derm
Ingredient Type
10%
Single
Combo
90%
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Branded Generic
IMS Institute for Healthcare Informatics. Drug Shortages: A Closer Look at Products,
Suppliers, and Volume Volatility. November 2011.
Le P, et al. Journal of Generic Medicines. 2011;8(4):210-218.
How Drug Shortages Are Affecting
Healthcare Organizations
“To what extent has the shortage of certain drugs or medications affected delivery
of care at your organization?”
Not Affected
16%
13%
Slightly Affected
N=55
42%
Somewhat Affected
Greatly Affected
29%
0%
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10%
20%
30%
40%
50%
Modern Healthcare Poll. Drug Shortages Affecting Healthcare Organizations. March, 28, 2012.
How Drug Shortages Are Affecting
Community Pharmacy
MCO/PBM not covering alt. therapy
52%
62%
MCO/PBM reimbursements inadequate
Higher drug acquistion costs
81%
Patients going without medications
78%
Average shortage lasting > 3 weeks
80%
23%
Experiencing shortages at least weekly
59%
Experiencing shortages at least daily
Experienced a shortage in the past 6
months
N=675
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96%
0%
20%
40%
60%
Schweers K. New Survey Reflects Impact of Drug Shortages on Community Pharmacists,
Patients. NCPANET. 2012 February 9.
80%
100%
Factors MCOs/PBMs Should Consider
Regarding Drug Shortages
Copay differentials /
Multisource penalties
Benefit design
Reimbursement / pricing
Formulary status /
alternatives / tier
placement
Utilization management
strategies
Retrospective DUR
programs
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Care path programs
Therapeutic substitution
programs
Member and Provider
communication initiatives /
web portal information
Claim processing messaging
RFP language
Clinical newsletters /
monitoring
Manufacturer relationships
AMCP Drug Shortages. Available at: http://www.amcp.org/Tertiary.aspx?id=13654.
Kelly LF. Drug Benefit News. 2012 Jan 27; 13(2). Berger JE. AJPB. 2012 Jan/Feb; 4(1):10-11.
Carroll J. Managed Care. 2011 November.
Example – Mail Service & Specialty
Pharmacy Impact
Increase in workload
‒ Calls to patients and prescribers
‒ Calls to distributors/wholesalers
‒ Compounding
Therapy impacts
‒ Delays in therapy while waiting for drugs
‒ Changes in therapy to available alternatives
Increase in costs
‒ Dispensing brands at generic copays
‒ Higher acquisition costs
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Reimbursement issues
Examples of Drug Shortages
Affecting Mail Service & Specialty
Pharmacies
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Mail Service
Specialty
‒ADHD Products
‒Methotrexate
‒Antihypertensives
‒Anticholinergics
‒Leucovorin
‒Fertility products
‒INTRON A
‒Cyclosporine
Example - Drug Shortages Resulting in
MCO/PBM Formulary Adjustments
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2009
isosorbide mononitrate (IMDUR, MONOKET);
diltiazem hydrochloride (TIAZAC)
2010
hydrocortisone (CORTEF) 5 mg & 10 mg;
paroxetine (PAXIL) suspension
2011
doxycycline monohydrate (VIBRAMYCIN);
cefuroxime axetil (CEFTIN) 125 mg/mL;
hydrocortisone/lidocaine (LIDA MANTLE HC)
cream
2012
oxcarbazepine (TRILEPTAL) suspension
Example - Drug Shortages &
Resultant Actions
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Drug(s)
Client Actions/Trends Seen
ADHD medications
•
•
•
•
•
Suspend mandatory mail / mandatory generic
Reference based pricing adjustments
New contracting/rebate opportunities
Copay overrides/multisource penalties suspended
Shifts to PROVIGIL/NUVIGIL
fluticasone &
flunisolide nasal sprays
• Adjust/suspend step therapy protocol
acyclovir, famciclovir,
valacyclovir
• Copay overrides/multisource penalties suspended
metaxalone, tizanidine
• Copay overrides/multisource penalties suspended
• Increased costs for Worker’s comp clients
clonidine patches
• Copay overrides/multisource penalties suspended
VOLTAREN gel
• Coverage of compounded product
• Shifts to PENNSAID topical solution
Example – Drug Shortages Affecting
MCOs/PBMs Trend
2011
‒Gabapentin
»#1 drug in anticonvulsant category for Managed
Medicaid LOB
»Top 5 drug by utilization for Managed Medicaid
LOB
»Over 50% price inflation
»Temporarily removed from MAC list
‒Vancomycin HCl injection
»Over 5000% price inflation
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AMCP Actions & Resources Relating to
Drug Shortages
Professional Practice Committee (PPC)
‒ Policy digest statement
» AMCP encourages health care stakeholders, government
agencies, and the pharmaceutical industry to work collaboratively
to seek proactive and strategic solutions to minimize the number
and impact of drug shortages on the drug distribution process and
patient outcomes (Approved by AMCP Board October 2011)
‒ Drug shortages resource page
AMCP Legislative/Regulatory Briefing and Federal
legislative tracking chart (www.amcp.org/federaltrackingchart)
AMCP News
AMCP Daily Dose
AMCP comment letters to congress and FDA
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http://www.amcp.org/2012/
Resources for Drug Shortage
Information
Food and Drug Administration (FDA) Drug Shortages
Homepage
http://www.fda.gov/Drugs/DrugSafety/DrugShortages/default.htm
American Society of Health-System Pharmacists (ASHP)
Drug Shortages Resource Center http://www.ashp.org/shortages
Centers for Disease Control and Prevention (CDC) Vaccine
Shortages & Delays http://www.cdc.gov/vaccines/vacgen/shortages/
Wholesalers / Distributors
Pharmaceutical companies
GPOs
PBMs
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Thank You
AMCP Professional Practice Committee & AMCP Staff
Clinical Account Managers: Danielle Nichols, PharmD; Julie
Ryba, RPh; Barbara Rogler, PharmD; Jennifer Svec, RPh; John
Nicolosi, PharmD
Analysts: Valerie Kehoe; Kristy Scheinfeldt
Mimi Davis, RPh, VP/GM, informedMail
Rick Couillard, RPh, Director, Pharmacy Practices, Ascend
Gintare Adomaityte, Pharmacy intern
Jennifer Wilbanks, PharmD, Drug Info Specialist
Sina Carlson, PharmD, Sr. Manager, Drug Information Services
David Calabrese, RPh, MPH, VP Clinical Services & Chief
Pharmacy Officer
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Questions/Comments?
Contact Info:
Sherry L. Andes, PharmD, BCPS, BCPP, BCACP
Sr. Drug Information Specialist
[email protected]
502-254-9531
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