Health Plan of Nevada Medicare Advantage Plan Offers Value-Based Drug Option

Move Hopes To Improve Health Outcomes If More Cost-Conscious Seniors

NASHVILLE, Tenn., Oct. 21 /PRNewswire/ -- HealthLeaders-InterStudy, a
leading provider of managed care market intelligence, reports that
UnitedHealth Group's (formerly Sierra Health Services) Health Plan of Nevada
Senior Dimensions HMO has significantly reduced copays for the drugs that
treat the most common chronic conditions. According to the latest Nevada
Health Plan Analysis, while the move is expected to add an additional $4.50
per month per member to the health plan's costs, in the long-term it may mean
more seniors are taking their medications and have improved health outcomes.
According to plan officials, the senior population is an ideal group for
such a pilot program because of its smaller numbers and higher incidence of
chronic conditions. Plan officials examined the plan's generic fill rates that
demonstrated how important cost is to seniors on the Medicare plan. The most
widely prescribed brand-name drugs for diabetes, chronic obstructive pulmonary
disease, asthma, high blood pressure and seizures were chosen for the cost
reduction. Copays for brand-name drugs have fallen from $20 to $30 a month to
$3 to $5.
Studies have shown that failure to take medications as prescribed creates
a financial burden on the healthcare industry and that people are more
compliant with their medications when those drugs are more affordable.
"This is an interesting move on the part of Health Plan of Nevada as its
drug spend will increase by about $2.9 million annually," said Heather
Johnston, analyst with HealthLeaders-InterStudy. "However, this program will
likely enable the plan to gain market share as seniors with chronic conditions
will be drawn to the low copay option. If the lower copay option produces the
desired results, more plans, including those for commercial members, may
consider this approach."
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HealthLeaders-InterStudy Decision Resources, Inc.
781-296-2606 781-296-2563
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SOURCE HealthLeaders-InterStudy

Lisa Osgood of HealthLeaders-InterStudy, +1-781-296-2606, losgood@hl-isy.com;
or Elizabeth Marshall of Decision Resources, Inc., +1-781-296-2563,
emarshall@dresources.com