Effects of the 2016 pharmaceutical reimbursement scheme changes – a microsimulation study

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Effects of the 2016 pharmaceutical reimbursement scheme changes – a microsimulation study K Aaltonen, P Heino, E Ahola, JE Martikainen Social Insurance Institution (Kela), Finland

Transcript of Effects of the 2016 pharmaceutical reimbursement scheme changes – a microsimulation study

Page 1: Effects of the 2016 pharmaceutical reimbursement scheme changes – a microsimulation study

Effects of the 2016 pharmaceutical reimbursement scheme changes – a microsimulation study

K Aaltonen, P Heino, E Ahola, JE MartikainenSocial Insurance Institution (Kela), Finland

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Background

• The global financial crisis has led to consecutive initiatives to reduce public pharmaceutical spending.

• The government objectives for the current changes were• Budget cuts.• Targeting reimbursements to patients with highest

health needs.

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Reimbursements for outpatient medicines* in 2016 and the simulated changes

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* Only medicines on the positive list can be reimbursed. Reimbursements may be restricted to specific patients by priorauthorisation.

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Aims

• Estimate the financial effects of the 2016 reimbursement scheme changes to patients and the public payer, the National Health Insurance (NHI).

• Describe and evaluate the used microsimulation method.

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Methods

• Microsimulation = a modelling techniquewhere legislative changes are applied to patient-level data.

• Static microsimulation• Does not take into account behavioral changes.

• Microsimulation was conducted using SAS software (SAS Institute Inc.).

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Simulation data

• 10% random sample (N=384,807) of people in the 2014 NHI prescription register (3.8 Million people)• All purchases for reimbursed medicines • Entitlements to disease based / restricted

reimbursements • Age, gender, personal income (tax register)

• Errors and discrepancies in the raw data solved in baseline

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Results

• Estimated savings for the NHI were €44.5 Million/year (−3% of pharmaceutical budget).

• Median change in out-of-pocket costs was +€11/patient/year (IQR +€3−+€17).

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Annual change in out-of-pocket (OOP) costs by OOP costs paid before change

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Annual change in out-of-pocket (OOP) costs byentitlement based on chronic/severe illness

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Annual change in out-of-pocket (OOP) costs by income

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Annual change in out-of-pocket (OOP) costs by age

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Conclusions

• As aimed, the changes increased patient’s share of costs for a large majority of people with relatively low prior costs.

• However, largest increases affected• high need people who previously had relatively low

out-of-pocket costs due to 100% reimbursements, and

• a small number of people with a very high numberof purchases after exceeding the annual ceiling.

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Conclusions

• Microsimulation allowed factoring in interactions between simultaneous changes and the spectrum of individual situations among affected patients.

• Ex post analyses are needed to confirm the effects and to evaluate the sensitivity and accuracy of the used method.

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@titaconsortiumwww.utu.fi/tita

@kelantutkimus www.kela.fi/tutkimus

[email protected]