JMCP Publishes Editorial on VBID: What Do We Really Know?

Published today in the Journal of Managed Care Pharmacy (JMCP) is an editorial on value-based insurance design, written by Kathleen Fairman and Fred Curtiss.  In the article titled “What Do We Really Know About VBID? Quality of the Evidence and Ethical Considerations for Health Plan Sponsors”, Fairman and Curtiss review the recently published studies of copay waivers and discusses the implications for payers, both private and public.

 The paper notes that use of copay waivers is estimated at about 20% of plan sponsors, but plan deductibles are actually trending higher, not lower.  While the reasons for the still minority uptake have not been formally studied, the authors point to market data suggesting the “potential for short-term increases in utilization and cost” with “uncertain” health benefits and the possibility of “unintended incentives” that could reduce generic drug utilization if brand drug copayments are reduced too much.

The editorial also provides an extensive review of the challenges associated with defining low-value services, which under the original intent of value-based benefits, are those for which copays should be raised, rather than lowered.

In their review of the recent literature, the authors discuss five major weaknesses of the studies published to date, including:

  • No information about generic utilization (the concern being that copay waivers for brands may discourage use of lower cost, clinically appropriate generic alternatives)
  • No information about payer cost, despite claiming a positive ROI from copay waivers in some recent studies
  • Problems in study design and/or reporting (e.g., inability to control for the Healthy Adherer effect)
  • Lack of randomized trials
  • Lack of plausibility in cost-benefit analysis (e.g.,  a VBID copayment reduction would have to increase the effectiveness of statin treatment by approximately 41%-49% in secondary prevention  and 68%-79% in primary prevention—despite increasing medication adherence by only about 4%-6%, a clear implausibility.)

For future research, the authors warn plan sponsors to watch out for: 1) isolated significant findings; 2) causal linkages (or lack thereof); 3) reporting of total cost rather than health plan or sponsor cost; and 4) overextension of results from one study to other populations and benefit designs.

Fairman and Curtiss conclude that “Because VBID has been associated with only minimal medication adherence increases documented only in observational research, and because no health or medical utilization outcomes (e.g., ER or hospital use) have yet been reported for VBID programs, the evidence is insufficient to support expanding its use at the present time.”

VBID is a topic that I have written about extensively, both in the blog and in the published literature, and I found this review both thorough and insightful.  For those of you trying to keep pace with the research in this space as well as the ongoing ethical and practical challenges associated with VBID, this paper is a great resource.

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  1. #1 by Patrick Gleason on March 23, 2011 - 3:54 pm

    Hello Brenda,
    I really enjoy this site and your insights.
    I would like to inquire as to for which drug class or population/disease state, if ever, would you recommend a zero dollar member cost share?
    Thank you in advance for your advice.

  1. When Are Prescription Copay Waivers a Good Idea? « Rx Outcomes Adviser

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