Health affairs
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Prescription drug plan managers seek "real-world" evidence regarding the safety and effectiveness of drugs and drug coverage policies. University-based pharmacoepidemiologists with access to administrative health data can help meet these information needs and, by collaborating with other health plans, exploit variations in plan policy. Canada, with its universal health insurance, public drug benefit plans, and population-based linked health care databases, is an ideal setting for such research. Here we describe our initial experience in collaborating with researchers and drug plan managers in British Columbia and Ontario.
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Kenneth Thorpe and David Howard provide an important snapshot of the long-term trends in Medicare beneficiaries' health care spending. They use clever methods to shed new light on increases in per capita spending, convincingly demonstrating that treatment patterns are a major factor. ⋯ Trends in per capita spending differ from other findings in that Thorpe and Howard find costs rising fastest for those with multiple conditions, and it is unclear what would happen if one took lifetime spending into account. Reliable predictions about long-term trends will require information on any health benefits associated with increases in diagnosis and treatment.
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We examine the impact of the rise in treated disease prevalence on the growth in Medicare beneficiaries' health care spending. Virtually all of this spending growth is associated with patients who are under medical management for five or more conditions. ⋯ Using the metabolic syndrome as a case study, we find that the share of patients treated with medications has increased 11.5 percentage points in less than ten years. This raises important questions about the "fit" of how Medicare pays for services for complex medical management.
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With spending on biologics rising and patent expiry approaching for several blockbuster biologics, Congress and the Food and Drug Administration are considering creating a clear pathway for so-called follow-on biologics. Differences between drugs and biologics will affect market outcomes in various ways. Conservative budget impacts are appropriate in the short run because fewer competitors will enter, and average prices will drop less than was the case following the Hatch-Waxman Act. Over the long term, intellectual property provisions will be important considerations for policymakers designing a pathway for follow-on biologics that balances price competition and innovation incentives.