Comparative Effectiveness:Helping Provide Value for Health Care Dollars

Fundamentals of Cost-Effectiveness AnalysisNational Health Policy Forum

October 30, 2008

Gail ShearerConsumers Union

Possible Annual Savings: 5 Categories

• Statins $1,300(cholesterol)

• Proton Pump Inhibitors: $1,740(acid reflux and ulcers)

• NSAIDs $2,200(arthritis and pain)

• Anti-depressants $1,200• Beta Blockers $1,900

(high blood pressure)

Monthly Costs of Equally Effective Drug Choices: NSAIDs, Antidepressants, ACE Inhibitors, 2005

$9

$168

$16

$77

$24

$171

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

Ibuprofen Celebrex Fluoxetine Zoloft Prilosec OTC Nexium

NSAIDs Antidepressants Proton Pum Inhibitors

Mon

thly

Cos

t

Medicare Part D: Cost Implications of Switching to Cost-Effective Drugs

January 2006

$216

$949$1,302

$2,771

$4,814

$6,335

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

Lowest Cost Plan

Tota

l Ann

ual D

rug

Cos

ts

Best Buy DrugsAlternate Drugs

Average Cost Plan Highest Cost Plan

Change in Prescribing Patterns

Baseline Follow Up

74%

19%

7%

Brand w/oGenericBrand w/GenericGeneric

25%

58%

17%