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Cigna’s Digital Coupon

Cigna recently announced some changes to their website. The one that caught my eye was the ability for a patient to print a coupon for a reduced copayment on their first fill of a generic drug.

I think it is a great step. My hope and questions would be as follows:

  • Is it to promote therapeutic switching or simply for movement from a multi-source brand to its chemical equivalent?
  • Is the coupon for anyone who is using a generic? Or is it only for new starts on a generic? Or is it only for those switching from a higher cost brand to a generic?
  • How do you drive awareness of the coupon and adoption of the web?
  • If all they really need is a coupon code, can you send it to their phone (much more likely to have it with them at the pharmacy)? Or could you trigger a fax to the pharmacy?

Anyways, I think couponing and incentives have a role in driving behavior, and it is good to see a MCO jumping into the digital age with this.

Aging Impact on Communication Strategy

We all know that healthcare spending is concentrated and often very highly correlated with age. Yet, aging has several impacts on people that change their ability to receive information. I found the following statistics very enlightening as to why a multi-modal strategy (i.e., mail plus phone plus Internet) is important.

  • Impact on reading – slower reader, reduced contrast perception (source: www.preventblindness.org)
    • 17% of people over 40 have cataracts
    • 50% of people over 80 have cataracts
    • 2% of people over 50 have AMD (age-related macular degeneration)
    • 3% of people over 40 have a visual impairment (including blindness)
  • Impact on hearing – can’t hear certain sounds, need hearing aids
    • 30-35% of people between 65 and 75 have presbycusis
    • 40-50% of people over 75 have presbycusis
  • Impact on cognition – slower learning time (source: International Journal of Experimental, Clinical, and Behavioral Gerontology)
    • 1% of people age 60-64 have dementia
    • 30-50% of people over 85 have dementia
  • Impact on mobility – challenges operating a mouse or car
    • 37% of people over 55 have tremors

All this data was part of a Forrester teleconference on December 13, 2007 called The Customer Experience Review, Q4 2007.

I couldn’t find a link to the Journal listed above, but I did find a nice set of links to information on aging.

Two Solutions For Cholesterol: No Room For Vytorin / Zetia

In another study to debunk popular prescribing habits, the American College of Cardiology said that Vytorin and Zetia should only be used after other cholesterol lowering drugs have failed (e.g., Mevacor, Lipitor, Zocor). They actually went so far as to recommend patients on these two drugs go back to the other drugs.

The study was also released in the New England Journal of Medicine and is a disaster for these two drugs who had grown in marketshare through Direct to Consumer (DTC) advertising, aggressive physician detailing, and timing of their launches with the brand drugs in the class getting close to losing patent protection.

It makes me wonder what my reaction would be if I was one of the 18,000 participants in the Improve-It study which is looking at whether Zetia and Vytorin prevents heart attacks and deaths.

See follow-up in USA Today.

Real Life Biggest Loser

We all know that being in shape has lots of health benefits.  The issues of being overweight drive healthcare costs through the roof.  There is plenty of data out there about the obesity trends in the US.  The reality is that losing weight is hard.

The show The Biggest Loser does a great job of showing what exercise and diet can do.  The challenge of course is that most of us don’t live in a controlled environment with a personal trainer and 3 hours to workout per day.  So, a good friend of mine who has done it all on his own provides a great story.  He was just featured in our local paper here, but he has gone from 270 pounds to almost 200 pounds and from not exercising to running half-marathons.

In the end, it is basic…take in less calories than you burn per day.  Good luck.

From the World Health Organization (WHO):

Overweight and obesity lead to adverse metabolic effects on blood pressure, cholesterol, triglycerides and insulin resistance. Some confusion of the consequences of obesity arise because researchers have used different BMI cut-offs, and because the presence of many medical conditions involved in the development of obesity may confuse the effects of obesity itself.

The non-fatal, but debilitating health problems associated with obesity include respiratory difficulties, chronic musculoskeletal problems, skin problems and infertility. The more life-threatening problems fall into four main areas: CVD problems; conditions associated with insulin resistance such as type 2 diabetes; certain types of cancers, especially the hormonally related and large-bowel cancers; and gallbladder disease.

The likelihood of developing Type 2 diabetes and hypertension rises steeply with increasing body fatness. Confined to older adults for most of the 20th century, this disease now affects obese children even before puberty. Approximately 85% of people with diabetes are type 2, and of these, 90% are obese or overweight. And this is increasingly becoming a developing world problem. In 1995, the Emerging Market Economies had the highest number of diabetics. If current trends continue, India and the Middle Eastern crescent will have taken over by 2025.Large increases would also be observed in China, Latin America and the Caribbean, and the rest of Asia.

Raised BMI also increases the risks of cancer of the breast, colon, prostate, endometroium, kidney and gallbladder. Chronic overweight and obesity contribute significantly to osteoarthritis, a major cause of disability in adults. Although obesity should be considered a disease in its own right, it is also one of the key risk factors for other chronic diseases together with smoking, high blood pressure and high blood cholesterol. In the analyses carried out for World Health Report 2002, approximately 58% of diabetes and 21% of ischaemic heart disease and 8-42% of certain cancers globally were attributable to a BMI above 21 kg/m2.

Fast Friday: First Edition

The good and bad of loving information is that you get a lot of it and hate to throw it away until you skim it and take some notes. But, I am getting backed up so I think I am going to start a Friday edition that will be less thorough and more a data dump of things that I have set aside. I welcome feedback on whether this is interesting, helpful, or just dumping.

  • ChangeNow4Health – I stumbled upon this website which interesting has a Humana copyright at the bottom. [Simplify, Prevent, Educate]

How do we go about fixing the nation’s health care system? Where do we start? ChangeNow4Health believes we begin with small first steps. We’re looking for changes we can confidently make in the short term, using existing resources in creative ways … changes that will result in genuine improvement.

    Health Transformation 2.0: Follow-up

    The other day, I provided a few comments on this book (manifesto) that I picked up, and I reached out to the author. He got back to me last night and was kind enough to provide the PDF of the publication.

    In his words:

    “These are simply my thoughts and thoughts inspired by a community of friends. It’s written as a kind of manifesto with the hope to inspire more good minds to tackle a very major challenge facing our society.”

    I would encourage you to reach out to him if interested. (E-mail Scott Danielson – author)

    Here is the book for you to view. I hope you will enjoy the hard work his community put in both in terms of content and graphic design.

    Don’t forget to sign up for e-mail updates or put the blog in your reader. Thanks.

    Drug Benefit News: Highlights / Comments

    I just flipped through the February 29, 2008 DBN edition.  A few things caught my eye:

    •  There is a whole article on PBMs and health plans focusing on physicians to manage Rx costs.  [Is this really new news?  The problem is not the focus, but on the incentives, the communications, and the age old question of who is in charge.]
      • As I pointed out in my recent webinar, most physicians agree that out of pocket spend is an issue for patients BUT most of them think it is the pharmacists role AND most of them are upset with the amount of calls they get from the pharmacists [who are trying to manage the spend].

    Brian Solow, MD, medical director at Prescription Solutions says
    “Physicians in the past have seen PBMs as maybe interfering with the practice [of medicine], but now they understand that [PBMs are] here and here to stay.  We’re trying to get the word out that the PBM is there to maximize the patient’s benefit, which hopefully in turn will make the physician’s life easier by helping the patient control the disease and get the proper medications.”

    A physician who they interviewed summed up the confusion well saying:

    “You just sort of pick [a drug], hope it flies, and if it doesn’t, somebody has to deal with it.” 

    Short of common formularies or working in a captive model (e.g., Kaiser) it will be hard to eliminate the confusion of different plans and different information.  Simplifying processes like Prior Authorizations could help.  Pushing information to the point of prescribing via electronic tools could help, but you are asking the MD to own the benefit management task which they don’t today.  (i.e., let me prescribe drug A…it has $x copay…would you prefer a cheaper alternative)

    It talks a lot about the CVS/Caremark settlement which is a lot like the Medco settlement from a few years ago.  The outcome [which is what I think they do today] is that they agree to:

    • Not move people to a more expensive drug (net cost or copay).
    • Not move from a MSB (multi-source brand) to a SSB (single-source brand).
    • Not move away from a drug whose patent is likely to expire in the next 6 months.
    • Inform patients and prescribers of the impact on copayment.  [very difficult]

    It also gives the latest on Medicare Part D lives:

    The total enrollment is 17.4M (as of January 2008).

    Healthcare Melting Pot

    Thanks to David’s post on the Health Business Blog, I came across the following study about the percentages of foreign workers that participate in healthcare roles in the state of Massachusetts.  Pretty amazing if you ask me.

    I think it clearly shows that we are making progress.  For those conservatives worried about immigration, it also shows how they are contributing to areas where we have a significant staffing issue today.

    According to the study, the percentage of foreign-born pharmacists doubled from 20 percent in 2000 to 40 percent in 2005. Physician assistants rose from 11 percent to 28 percent and paramedics increased from 4 percent to 14 percent.

    Other occupations with significant numbers of immigrants included foreign-born physicians and surgeons, who were 28 percent of their field in 2005, opticians (22 percent), licensed practical and vocational nurses (21 percent) and dentists (17 percent).

    Value Based – Impact on Pharma

    Kip has a good posting about the impact of value-based benefit design on the manufacturers.  He doesn’t allow comments so I will post some thoughts here.

    For many firms, this will require a significant, even scary change in thinking and tactics; payor-centric communications; comfort with a massive increase in transparency; and a greater willingness to partner. Therefore, while the financial risks of moving to a value-based world are daunting, ultimately the greatest challenges are intellectual.

    Value-based drug benefit designs will pose the greatest challenges to manufacturers with product lines (or pipelines) dominated “me too” drugs; rigid, risk-adverse organizational silos; and out-dated, prescriber-centric communications.

    While I certainly think the industry has been tip-toeing towards value based benefits for a while, it still will beg several key questions:  [Note: When I think about value based, I think about a grid showing outcomes mapped out versus costs similar to a quality over price analysis.]

    1. How do you value certain things – less pain, convenience, minor variations in outcomes, extension of life?
    2. How does genomics play in here when you realize that a drug may be better for one patient but worse for another?
    3. How do you communicate this to patients without making benefits more difficult to understand?
    4. Can patients “buy-up” to pay the difference to allow them to get an alternative that keeps the company neutral?
    5. Will we ever get standards and clean data?  We can’t even agree about whether anti-depressants work.

    I agree it’s a key trend and one to watch, but I think the implemented reality will be radically different than the solutions out there.

    Health Transformation 2.0

    I grabbed this little book off the table at Health 2.0.  I am finally getting around to flipping through it (rather than sleeping).

    I can’t figure out if it’s associated with a company.  If yes, they have done a great job of disguising it.  [For what purpose, I don’t know.]  It is very well laid out with great graphics and is called:

    Health Transformation 2.0
    Can A Better Healthcare Operating System Make Us Healthier?

    The author’s name (Scott Danielson) and e-mail are in the cover so I have shot him a note to see if I could add it here as a flash or some other visual.  Here are a few of the comments from the book:

    •  Healthcare 2.0 uses emerging technologies to transform an archaic, disease-treating system into a progressive health-enhancing one.
    • In the past 4 years, healthcare costs have doubled.  Are we twice as healthy?
    • Today, we have the ability to create a set of tools, a healthcare operating system that will help people find and manage information, research and control costs, and get and/or stay healthy.
    • Connected.  Helpful.  Secure.  Organized.  Informed.
    • Personal + Health + Power = Personalized Health Empowerment

    Does 1% Matter?

    The whole theory behind Microtrends is the 1% of the population matters and can form a force that can drive change.  Look at all the talk about marathoning in this country when only 0.17% of people have run one.

    From a healthcare perspective, I found it interesting that genetically “any two people are more than 99% the same at the genetic level” yet obviously genomics matters.  [We want to know what genes do.]

    If small gene differences can make the difference in how our body uses medicine, it could be a breakthrough, but (as the WSJ article suggests) will it bee too much for medicine to really master and take advantage of.  Great question.

    All of this made me think back to healthcare communications…does 1% matter?  Yes.  If you could develop communications that were specific to each segment, even if they varied by 1%, wouldn’t that improve results.  And, if you’re focusing on the measures that matter to drive your results, won’t that have an impact.

    Medication Adherence Devices

    I think we all can predict that the medical device industry should explode over the next few years.  USA Today had a recent article on a “smart pillbox” which caught my eye.

    According to Forrester Research, the market for home health monitoring technologies is expected to reach $5 billion by 2010 — and $34 billion by 2015.

    As the article stresses, this technology will be important with over 30M Americans taking more than 3 medications per day and over 100,000 dying from adverse drug reactions.

    Usually, I hear about things like glowing bottle caps to remind people to take their medications.  Although the Med E-Monitor is a little bulkier, I like the fact that it does more than simply remind you.  It also looks for adverse drug events and provides information.  Ideally, one of these devices will simply generate refills through a simple click.  [I have not read the studies but they claim to have raised adherence from 35-40% to 90% which would be significant.]

    med-e-monitor.gif

    My big questions from looking at the website are:

    • It holds up to 5 medications.  What about those patients on 30 medications?  Can it be modularized?
    • Even if it can’t have modules, can it store the data and serve as the central reminder for medications not in there?
    • Who programs it with every medication change?  The MD.  The patient.  The company.
    • Can it generate a refill request to the pharmacy?  Can it generate a request for a renewal (i.e., a new prescription for my existing medication)?
    • Will people pay $60 a month?  Is the buyer, the children that live out of town and want their parent to be safe or the actual patient themselves?

    Some of the other sites out there talking about solutions include:

    Great Book – Microtrends

    microtrends.jpgAt PBMI, one of the best speakers was Kinney Zalesne who with Mark Penn wrote the book Microtrends. I just finished reading the book – all 370+ pages. I found it to be one of the most engaging non-fiction books I have read in a long time…which says a lot. I have boxes and book shelves of books that I have bought, skimmed, and stopped reading. I get something out of them, but it is often not enough to continue reading the whole book.

    I found Microtrends to be interesting both personally and professionally. Let me throw out a few of the things that I highlighted and noted during my reading along with some of the potential implications within healthcare.

    Some of the topics they cover:

    • Love, Sex, and Relationships (Sex-Ratio Singles, Cougars, Office Romancers, Commuter Couples, Internet Marrieds)
    • Work Life (Working Retired, Extreme Commuters, Stay-at-Home Workers, Wordy Women, Ardent Amazons)
    • Race and Religion (Stained Glass Ceiling Breakers, Pro-Semites, Interracial Families, Protestant Hispanics, Moderate Muslims)
    • Health and Wellness (Sun-Haters, 30-winkers, Southpaws Unbound, DIY Doctors, Hard-of-Hearers)
    • Family Life (Old New Dads, Pet Parents, Pampering Parents, Late-Breaking Gays, Dutiful Sons)
    • Politics (Impressionable Elites, Swing Is Still King, Militant Illegals, Christian Zionists, Newly Released Ex-Cons)
    • Teens (The Mildly Disordered, Young Knitters, Black Teen Idols, High School Moguls, Aspiring Snipers)
    • Food, Drink, and Diet (Vegan Children, A Disporportionate Burden, Starving for Life, Caffeine Crazies)
    • Lifestyle (Long Attention Spanners, Neglected Dads, Native Language Speakers, Unisexuals)
    • Money and Class (Second-Home Buyers, Modern Mary Poppinses, Shy Millionaires, Burgeois and Bankrupt, Non-Profiteers)
    • Looks and Fashion (Uptown Tatooed, Snowed-Under Slobs, Surgery Lovers, Powerful Petites)
    • Technology (Social Geeks, New Luddites, Tech Fatales, Car-Buying Soccer Moms)
    • Leisure and Entertainment (Archery Moms?, XXX Men, Video Game Grown-ups, Neo-Classicals)
    • Education (Smart Child Left Behind, America’s Home Schooled, College Dropouts, Numbers Junkies)
    • International (Mini-Churched, International Home Buyers, LAT Couples, Mammonis, Eurostars, Vietnamese Entrepreneurs, French Teetotalers, Chinese Picassos, Russian Swings)

    Second, the countertrends are very interesting. More caffeine and more water. Shorter attention with a rise in knitting. More technology and more people abandoning technology. Obesity and intentional starvation. More sun tan parlors and more people afraid of the sun.

    “Microtrends is based on the idea that the most powerful forces in our society are the emerging, counterintuitive trends that are shaping tomorrow right before us.”

    Sample facts:

    • Less than 25% of the households in the US are married-with-kids. 26% are households of one person.
    • At birth, there are 90,000 more boys born per year than girls. By age 18, it has switched to a 51% female mix. Exclude out the gay men and lesbian women, you get a straight sex ratio of 53 women to 47 men.
    • 3M American adults in a long-term relationship or married met online which is the same number that met in church.
    • There are already 5M people 65 or older in the workforce and that number is expected to grow.
      • According to an economist at the Urban Institute, “if everyone worked just one year beyond expected retirement, we’d completely offset the anticipated shortfall between benefits and taxes in the old age insurance portion of Social Security.”
    • 3% of workers work from home. The average commute is 25 minutes. 3.4M people commute at least 90 minutes each way to work.
      • Researchers at Georgia Tech found that “every thirty minutes spent driving increases your risk of becoming obese by 3 percent.”
    • In a Gallup poll in 2006, when people were asked about how they feel about religious groups, Jews rated the highest with a net positive of 54%. There are more Christian evangelicals in the US that support Israel than Jews.
    • 5.4% of marriages are interracial which led to the US Census allowing people to select multiple races in 2000.
    • There are 10M Protestant Hispanics in the US which is more than the number of Muslims or Presbyterians.
    • 81% of American Muslims support gun control (compared to barely half of Americans).
    • There are 3x as many tanning parlors in the US as Starbucks.
    • 1 in 10 children aged 12-18 uses a sunlamp and only 1 in 3 uses sunscreen. And, at least 25% of skin damage occurs before a person is 18 years old.
    • 16% of American adults sleep less than 6 hours a night. But, this causes injuries, accidents, and health problems. Lack of sleep triggers hormones that boost hunger and appetite.
      • She calculated out what I have argued for years that this creates an extra 8.2 years of life for someone who lives to 82.
    • DIY (Do-It-Yourself) Doctors is a whole new group of people that self-diagnose, self-medicate, and challenge their physicians.
    • OTC sales are now $15B per year.
    • In 1997, Americans spend more out-of-pocket on Complementary and Alternative Medicine (CAM) that on hospitalizations.
    • 3 in 5 Americans worry about medication errors at the hospital.
    • Women make healthcare decisions in over 70% of households.
    • 81% of people would like to use e-mail with their doctors but only 8% say they do today. [If they were controlled and reimbursed for this without increasing risk, I think they would welcome it.]
    • 1 in 10 Americans have some hearing loss. Nine seconds into a rock concert, you experience hearing loss. [I have been to several concerts even in the front row so that seems like a problem.]
    • 1 in 18 births were to men over 50. [Changes your underwriting profile.]
    • 63% of American households have pets. And, the top 1% of pets live better than 99% of the world’s population.
      • Studies have show health benefits of pet ownership including lowering blood pressure, reducing stress, preventing heart disease, and warding off depression.
    • Only 15% of parents would take away their kids privileges if they found out their 15 year old was using illegal drugs. [And most of us think we are strict?]
    • Only 4% of people over age 65 live in nursing homes or assisted living arrangements.
    • 40% of the people providing unpaid care for infirm adults are men. [Counter this to the assumption that women make most healthcare decisions.]
    • 650,000 ex-cons enter society every year. [Have we increased their health literacy while in prison.]
    • Childhood autism has increased 9-fold since 1992.
    • The number of kids being treated with antipsychotic drugs shot up 138% between 1997 and 2000.
    • In 2005, the main medical manual on the mental health of infants added two new subsets of depression, five new subsets of anxiety disorders and six new subsets of feeding behavior disorders.
    • There are 20M knitters in the US and more than ½ of them are under 34 with almost 6M of them being under 18.
    • In 2000, over 8% of teens were making money on the Internet.
    • There are 1.5M kids (between 8-18) that are vegetarians. 3M more who pass up meat but each chicken or fish. And, 3M more that each just chicken. 11% of girls aged 13-15 don’t eat meat.
      • Vegetarian men have been shown to have a 37% lower risk of heart disease.
      • Vegetarians of both genders are ½ as likely to develop dementia.
    • There are 9M morbidly obese people in the US (100 pounds overweight). Women are 2x as likely as men to be morbidly obese, but 1 in 6 black women are morbidly obese.
    • There is a small group of people practicing Calorie Restriction diets (1,200 – 1,800 calories).
      • Scientists have found that this lowers blood pressure, LDL, clogging of arteries, and body temperature (which may slow aging).
    • 6 of 10 Americans drink coffee every day. And, Americans drink 23 gallons of bottled water per year and 52 gallons of carbonated soft drinks.
    • The average age of caffeine overdosers was 21 in a study done around the Chicago Poison Center.
      • Caffeine causes insomnia, anxiety, headaches, stomach problems, cardiac arrhythmias, and weight gain.

    “It is almost as though marketers see today’s society as an Amazon tribe, where women make all the decisions and men just go along for the ride.”

    • There are 12M “linguistically isolated” households in the US (i.e., no one speaks English well). And, in 2/3rds of these households, the head of household was born in the US. [Is multi-lingual soon to be a requirement?]
    • 1 in 3 Americans age 25-29 have a tattoo. 13% of Americans aged 18-24 have a tattoo and a body piercing.

    Sample Healthcare Questions:

    1. How do we respond to the change in the family – older dates, commuter couples?
    2. With people working longer, what does this mean for health benefits? Are your needs and expectations different at age 75?
    3. When people are doing things that influence their health – sun tanning, sleeping too little, drinking too much caffeine, will companies step in and try to control this? (I know one large company in the South that has decided they won’t serve any fried food in the cafeteria.)
    4. Why don’t we do things like encourage pet adoption to help people become healthier?
    5. What are the implications of vegan children and low calorie diets and should the industry embrace, reward, or monitor them?
    6. When people don’t want to indicate a gender, will healthcare forms have to offer a “neither” category?
    7. With so many people getting tatooes, how long until that is a covered benefit or where there is a negotiated discount like the gym.
    8. There are lots of messy people. How do you communicate with them knowing they will misplace many things?
    9. For the people that have tried the Internet and chosen not to use it again, do you risk offending them with your constant push to self-serve?
    10. If America wants numbers, should we communicate more details not less?
    11. Should we be tracking lots of other factors (diet, caffeine, commute) in our Personal Health Records?

    istock_000005278005medium.jpgI could go on, but I don’t want to give it all away. It is worth reading. It really makes you realize the value of targeting and personalization within a HealthComm framework.

    Don’t You Know Me

    A Harris Interactive poll published in AdAge a few weeks ago, talked about the value people put on companies knowing who they are. We have all had that experience where you put in your phone into the IVR then get asked to verify it when the person picks up the phone and asked again for the number and your name when you get transferred. How annoying!

    I always joked with our VP of Call Centers that Dominos was more likely to know who I was based on my caller ID then we were. There are so many technologies out there that there isn’t a good reason for companies not to take advantage of them. There is technology that based on your voice can tell if you are depressed. There is technology that based on your voice can tell if you’re angry. There are plenty of screen pops and technology that can pull in the caller ID.

    Even the companies that do that don’t often have a consolidated view of the customer. They don’t know that you called yesterday; visited the website earlier; got a call last week; had a mailing sent to you last month; filed a complaint about the same issue you are calling about; etc.

    So, how do consumers feel…

    • 95% believe it is at least somewhat important that companies know “who I am, my buying history, past problems or complaints, preferences, and billing record”
      • 37% said personal history is important
      • 27% said it’s very important
    • 62% said they would not hesitate to cancel or switch services if they had a negative experience

    Of course, healthcare makes this hard. With employer sponsored healthcare, I can only switch annually or with certain events. With individual healthcare, I might not switch for fear of having some condition excluded. Plus, companies worry about trading privacy for personalization.

    But, the reality is that this is going to continue to be an issue. Technology is putting more and more information out there and raising the bar.

    On the flipside, doing something wrong quickly gets put on people’s Facebook pages, their blogs, or other tools where the experience ripples real-time and never disappears.

    Savings From Wal-Mart Program

    I must admit that the $4 generics programs across the country cause me to have a mixed reaction.  On the one hand, it’s great.  It saves patients money.  In theory, it should encourage compliance.  On the other hand, if they get processed as cash transactions, I worry about them not showing up as claims which could limit the effectiveness of the POS (point-of-sale) DUR (drug utilization review) process.  [DUR includes things like drug-drug interactions.]

    But, I was very interested to see some of the Wal-Mart data being published.

    “While $1 billion in savings is an astonishing achievement, the real savings to America – and its health care system – are even larger. That’s because many of our competitors have also lowered their prices.  [Four dollar] prescriptions now represent approximately 40 percent of all filled prescriptions at Wal-Mart. Nearly 30 percent of $4 prescriptions are filled without insurance – significantly higher than the 10 percent industry trend.”  Dr. John Agwunobi, Wal-Mart‘s senior vice president and president of health and wellness

    You can go drill down on some of the data (e.g., state by state savings) here.  Some of the top states were:

    • Texas ($132,628,224)
    • Florida ($72,443,467)
    • North Carolina ($48,241,530)
    • Georgia ($42,279,383)
    • Missouri ($40,213,963)

    It is also great to see that 30% of all the $4 generics are being filled by people without insurance.   It was also good to see that they are focusing on bringing new generics into this group faster which was another historical criticism that I had.

    Trusted Source of Healthcare Information

    I often wonder who people trust for information.  So I was glad to come across this  article in Employee Benefit News.
    I must admit that I was surprised by several of the results.

    • Only 2% trust their employers?
    • More people trust their PCP versus their specialist?
    • More people trust general information portals versus content sponsored on their health plan website?

    ebn-trusted-source-info.jpg

    Healthcare Informational Links

    Here is a great list of links from PBMI and the Takeda report.

    Takeda: Prescription Drug Benefit Report

    Have you ever read the annual Takeda Prescription Drug Benefit Cost and Plan Design Report?  It is a great summary of data from 340 employers representing over 6M members and this version is based on data from May and June 2007.

    Here are my notes:

    •  89% use tiered formularies.  [I am amazed that 11% still have a one-tier plan.]
    • Closed formularies (where drugs not on the list aren’t covered at all) have almost disappeared.
    • 11.1% of employers use mandatory mail.
    • Mail order penetration with mandatory mail is 27.3%.
    • 26.8% of employers use retail pharmacies to dispense 60+ day prescriptions.
    • 51.5% of employers require use of a specific specialty pharmacy.  (mandatory specialty)
    • 40-70% of the specialty drug spend is under medical not pharmacy
    • Flat dollar copayments still represent about 75% of plan designs
    • The average copayments for retail are $8.91, $23.08, $39.77 and for mail are $17.99, $47.89, and $81.07.

    takeda-retail-copay-trend.jpgtakeda-mail-copay-trend.jpg

    • It talks a little about using lower copayments to increase adherence:
    • The Cleveland Clinic has a plan outlined here where they dropped their statin copayments dramatically from $75 and $90 for 90-days to $6 for a generic and $8 for Lipitor or Crestor.  The drugs had to be purchased from the clinic’s pharmacies.  Additionally, the employee had to split the pills (i.e., get a Lipitor 40mg pill and split it to get two 20mg pills) except for those who required the highest doses.
      • 38% of eligible members participated
      • Adherence went up 20% in year one
      • 50% of those that participated picked up all their prescriptions in year one compared with 18% of those that didn’t participate
    • The average pharmacy reimbursement rates as a percentage off AWP were:
      • Retail brand 16.1%
      • Retail generic 43.6%
      • Mail brand 22.7%
      • Mail generic 51.8%
      • Specialty 16.5%
    • For most, they still show an average dispensing fee although I thought that was gone in mail for sure.  (It says only 20% pay a dispensing fee at mail.)
    • The brand rates seem pretty reasonable, but I think the generic rates are pretty pathetic.  I thought it would be more like 50% retail and 60% mail.
    • The GFR (generic fill rate) ranged from 4.7% to 71% at retail and 1.8% to 71.4% at mail.  (Note that your GFR at retail should be higher as their are more acute generics.)
    • The average GFR was 54.5% retail and 41.7% mail.

    takeda-grf-trend.jpg

    • The copay differential between tiers one and three makes a difference…at least at retail (what about one and two?):
      • If it is $25 or more, the retail GFR was 4.9% more and if it was $65 or more at mai, the mail GFR was 0.6% less.
    • The averages for Rxs PMPM and costs were broken out by active employee and retiree:
      • Rxs PMPM were 2.1 active and 3.5 retiree
      • Gross costs PMPM were 76.15 active and 146.23 retiree
      • Net costs PMPM were $55.52 active and $122.99 (with highest being 401.32 and 359.00)
    • Rebates per branded Rx (actual not guaranteed) were:
      • $2.57 retail
      • $10.79 mail
    • There is another case study insert about the University of Michigan’s pill splitting program for statins (aka cholesterol lowering drugs).
      • Participants save 50% on copay and get a free pill splitter
      • 500 people participated saving them $195,000 and the patients saved $25,000 in copays
      • According to their director of benefits, if 25% of eligible statin users split pills, they could save $740,000 per year
      • So, they must have had about 6% participation in the year one savings above
    • I was actually shocked by the number of employers covering some OTCs (which I think is great).
      • 83.9% cover Prilosec OTC
      • 79.3% cover loratadine (Claritin)
    • 76.4% use some quantity level limits
    • 75.8% use refill too soon logic (I thought this would be 100%)
    • The classes most typically excluded from coverage

    takeda-drug-exclusions.jpg

    • It lays out the most common UM (utilization management) tools used including:
      • Disease mgmt 30.5%
      • Dose optimization 22.6%
      • Outbound phone calls 17.9%
      • Step therapy 35.5%

      takeda-um-tools.jpg

    • And, finally, it gives a lot of links for more information which I will post in another entry.

    Another Good IDC Quote

    We have been out talking to the analysts to get their feedback on the market and share some of our new ideas.  I mentioned a good quote a few weeks ago from IDC, but I was even more excited by their publication last week (see 1/2 way through the document).

    The story is called “Communications Technologies – the Industry Step Child to the PHR?” and is by Janice Young.

    “Amidst the market hoopla last week at HIMSS of Google’s formal entry into the healthcare market with the GoogleHealth PHR were other significant announcements focusing on what may are considered more mundane healthcare initiatives – consumer communication strategies. In particular, Silverlink Communications released two announcements in the past two weeks reflecting the next generation of healthplan investment in communications technologies.”

    “The successes and opportunities of new communications tools from Silverlink, Varolii and others are largely unheralded, yet good cost/benefit studies exist. Health plans have found the return on investment and report that automated communications programs improve prescription drug cost management and increase COB information to health plans.”

    “Targeted multi-channel communications tools can both improve healthplan costs and quality in the short term and also provide insight into consumer segmentation and behaviors that will be invaluable to managing the emerging consumer communications and information management platform, include PHR deployment and adoption”

    Comparing our announcements to that of Google was impressive, and she clearly gets the power of the solution.

    Did the Government Admit Vaccine:Autism Link?

    I caught some sensational header about this the other day. Rather than engage in a debate about it, I wanted to simply post a link to an autism blog which appears to have a well written piece about the article, the settlement, and some of the issues.

    Does Price Have a Placebo Effect?

    I mentioned it yesterday in the post about Drug Benefit News, and I think I have talked about it early last year. The question is how do people view price as influencing their decisions about drugs.

    • Does free influence perception of value?
    • Does paying 10% of a $100 drug sound better than paying 10% of a $30 drug?

    USA Today had an article the other day on this topic. They talk about a study in which subjects were given sugar pills. They were all told that it was a new pain drug. Some were told that it costs $2.50 per pill and some were told that it costs $0.10 per pill. A series of shocks were then administered to the patients. 85% who were told that it cost more (versus 61%) said that they felt less pain after the pill. (The Placebo Effect)

    “What we experience is partially reality and partially what we expect to experience,” says the senior letter author, Dan Ariely, a Duke University behavioral economist whose new book, Predictably Irrational, explores why people make the choices they do.

    pills2.jpgThey go on to say that this might explain why some of the Cox-IIs (i.e., Vioxx, Celebrex) were so successful and could explain why people don’t think generics are working as well as the same brand drug they were taking. They also say this could convince people to be less compliant since they don’t see as much value in the generics. [There must be a study out there that shows compliance of generics versus brands.]

    This should influence how you interact with patients and present information to them to convince them of value.

    You can see some additional information from one of the study authors on his blog.

    Drive Thru Prescribing

    If you need any more proof that Direct-to-Consumer (DTC) advertising around pharmacy works, all you had to do was read the research from USA Today, Kaiser Family Foundation, and Harvard School of Public Health.  (see article)

    • $4.8B spent on drug advertising in 2006 (up from $2.6B in 2002)
    • 1/3 of Americans ask their MDs about an advertised medicine
    • 82% of those that ask say their MDs recommend a Rx…BUT only 44% got the drug they asked about

    Of course, the question is whether this is good or bad.  Are we a sick population which needs more medication?  We are already the most medicated population ever with a growing generation that will not know anything other than being on medication.  Or, are we finding  new reasons to take medication which are driven by advertising?

    That is why we have a system of checks and balances.  Patients feel sick or see an advertisement.  They speak with an MD about it and determine a treatment plan.

    Of course, the system fails when those that need medication can’t get it due to financial issues.  The article mentions that:

    • 29% of Americans have not filled a prescription in the past 2 years due to cost pressures
    • 23% have cut pills in half or skipped doses to make their prescriptions last longer
    • And, 41% of families said buying drugs is sometimes a problem due to cost.

    dtc.jpg

    Health 2.0: My Notes

    I am just flying back from the Health 2.0 conference out in San Diego. I feel like there is a ton of information that I want to share so kudos to Matthew and Indu for the great job. (And, if you make it to the end of this post, you must really like the topic.)

    I decided the best way to do this is in three posts: (1) Notes; (2) Companies; and (3) Observations. [Some people were doing live blogging which I just couldn’t do and keep focused.]

    Here are a few of the other blog postings about the event:

    So, let me begin here with my notes from the conference which began Monday with some informal sessions (user driven) and a deep-dive on a new vendor American Well. [I missed this event since it was so packed that it was standing room only in the hallway, and I was 5 minutes late getting off a conference call. That being said, they were in there for 3 hours so there must be something pretty interesting.] Tuesday was pretty much packed from breakfast (7:00) until I got back from dinner (11:00).

    Matthew Holt:

    • Talked about his Health 2.0 picture of search, social networks, and tools. And, at the end of the conference, he showed a preliminary sketch of the model for the fall Health 2.0 conference where each of these are blown out into smaller segments.
    • Talked about the challenge of wrapping context around transitions. [In a side conversation, I thought someone else made a great point of saying that one of the biggest challenges will be how to drive change.]
    • Talked about the four stages of Health 2.0. I was soaking it in versus scribbling notes madly so all I got were phase 1 (user-generated content) and phase 2 (users as providers). But, I believe the later phases do (or should) show these models integrating into the establishment.

    Susannah Fox (Pew Internet & American Life Project):
    [Who by the way was a very good speaker and refreshingly gave a 30-minute presentation w/o any slides.]

    • Talked about an early 2000/2001 quote from the AMA on not trusting the Internet and a push to the physician. [That seems to have softened a bit over the years.]
    • Said that 40% of adults in America have a high school education or less which gets right to the issue of health literacy.
    • Talked about validity of online data. Researchers want to see date and source, but patients don’t look for that.
    • Talked about an article in a cancer magazine about misinformation which said the most highly correlated factor was a discussion around alternative medicine. Those sites often had misinformation on them.
    • She set the tone for the day by using the concept of a seven word expression to summarize your talk. Her’s was “Go Online. Use Common Sense. Be Skeptical.”
    • Pointed out that only 3% of e-patients report bad outcomes based on online data. [I think this whole discussion around what patients want in terms of research versus experiential data from their peers is very interesting.]
    • Talked about the white space between a “physican is omnipotent model” (my words) versus a “patient self-diagnosis world”. That is where we have to find a solution.
      • [A person from Europe who I talked with said that not only is their model different but the fact that they hold the physician on a pedestal makes some of these things impractical there.]
    • Talked about a new term for me – “participatory medicine”.
    • Said that Pew had classified people into three groups not on the concept of do you own a mobile device (for example) but on how you use it (e.g., do you feel like the device interrupts your life when it buzzes you, do you require help in setting up your devices).
      • 1/3 of Americans are “elite tech users” who own lots of devices
    • There is still minority distrust of some of these online tools. Some of this is generational.
      • The memory of the syphilis experiment is failing.
      • There is limited discussion of faith in these discussion areas which is important.
      • The older generation typically has less technical skills.
    • Her next seven word expression was “Recruit Docs. Let E-Patients Lead. Go Mobile.”
    • She described African American and Latino users of mobile devices as leveraging it as a Swiss Army knife versus a spoon. [I hope I use it more as a spork…which I assume is evolutionary over the spoon.] They use it more than TV or computers.

    Patient Videos:

    • One of the most engaging segments was a series of video clips from patients.
      • The founder of i2y.org (I’m Too Young For This) spoke about being diagnosed with cancer at an early age and how he overcame the physical challenges and has become a go to destination for people about cancer.
      • The founder of Heron Sanctuary in Second Life talked about how she has limited mobility in real-life and her ability to create a world in second life where she can help people and gave examples of how people are using this virtual reality tool.
      • A young woman with RSD talked about how she has used ReliefInsite to manage her disease and pain. She also had the same issue of being “too young” to have RSD and the challenges of finding a physician to help her and believe her.

    The format for most of the day was to have 3-4 founders or executives from companies get up and talk for 4 minutes on their company. Then a panel of people would comment and questions would get asked. On the one hand, it was a compelling, fast-based approach that kept your attention. [No nodding off at this conference.] On the other hand, it was heavy on marketing and light on really drilling down on the problem. [Although I am not sure that was the purpose or even achievable without making this a multi-day conference.]

    So…here were a few of my quick notes on some of the companies. I will post another one trying to look at some screen shots and other observations. If you didn’t get mentioned here, it’s likely because I was simply watching or distracted. Hopefully, I catch everyone on the Health 2.0 Company post.

    • WEGO Health – allows consumers to rank content…i.e., directed search…gave example of search for some health topic that returned 98,000 links on Google, but only 50 here…option to score after consumer uses the link
      • Seems interesting. How often is it updated? How do you build awareness? Can it be part of a broader search engine? Seems like a likely acquisition to be another option like images or desktop from a search criteria within Google.
    • HealthCentral – biggest brand you don’t know (or something to that effect)…have 40+ sites around specific disease states…6M unique visits per month…new VC money…100 “expert patients” found to create initial communities…ability to create inspirational cartoons that summarize your story…good GUI
      • I really liked some of the features they demonstrated (in 5 minutes). They talked about creating micro-communities (e.g., spouses of people with a disease).
      • The idea of “recruiting” 100 “expert patients” to build an active community was one of the best I saw.

    In preparation for discussion on patient-MD solutions, someone shared that only 2-3% of MDs allow appointments to be booked online. There was discussion that patients don’t really look to the Internet to find a physician or hospital. They look at what’s in-network and they ask their friends. There was an example given for Yelp which is used to rank restaurants, but allows people to review the physician. [A comment I heard later was when will we see a site ranking the sites that rank physicians.]

    • Carol (company name) – talked about mall concept in that people shop for something like a physical or allergy test not necessarily a specific type of MD…provide cash prices and insured prices
      • Seemed interesting. I will have to think more about how I search.
    • Vitals.com – I talked about this company on the blog a few weeks ago…still like the graphics…saw a few other features that I hadn’t noticed such as customizing the search criteria and using slider bars so that you get weighted recommendations

    I thought there was a good discussion on why would an MD participate in a ranking site.

    • Help them sub-specialize (i.e., I want to treat knee pain not neck pain).
    • Allow them to attract the right type of patient that matches their style and focus.
    • Ego…allowing them to manage comments.

    IDEO, the famous industrial design, company facilitated a lunch workshop and talked at the conference. For simplicity, I will blend both notes here. (see old post about IDEO book)

    • Talked about user-centric design which is key. At lunch asked us to come up with a solution to address the problems of diabetes patients. Showed us four interviews with diabetics. But the stress was not on solving what we thought was their problem, but trying to actually listen to what they say and do in order to find something. Key point.
    • Talked about empathic research showing that we don’t say what we think, do what we should logically do an online car loan, or even do what we think we do.
    • Talked about a book called Thoughtless Acts.
    • Gave examples of project with Bank of America that showed how most people round up their credit card payments so they started a “Keep the Change” campaign which allowed them to attract 2M new members.
    • Walked through an example of creating the Humalog pen for Eli Lilly.
    • Talked about creating a new bike design.
    • All of them were common in the framework they use and their focus on the person/user/patient/member.
    • Lunch was an interesting workshop where you listened to the videos, identified issues, brainstormed solutions, picked a solution to “pitch”, and then shared your idea with your neighbor. At our table…
      • Saw problem largely as educational / informational
        • Don’t know what to expect
        • Don’t know where to get information
        • Don’t understand lifecycle and treatment plan options
        • Don’t know what to do with the pump
      • Talked about everything from portal to device solutions
      • Settled on an iPump concept that would blend an iPod with an insulin pump and foster a community around it to develop cases (e.g., a belt that it fit into as part of a formal dress), videos to download to it on education, connectivity to trigger auto-refills, etc.

    Then we had several discussions by physicians that were blending the old model of house calls with technology. Seems very cool (for those that can afford it). Although one example was relevant, it missed the masses. One showed a trader who was too busy to leave the trading floor, but he had a sore throat so the physician came to his office, took a culture, and gave him an antibiotic.

    • One great point that they made was the benefit of seeing the patient’s environment (i.e., home) in helping them manage a disease.
    • I loved the fact that they would send me an e-mail with my notes from the visit rather than trying to scribble things down while they are talking.
      • Of course, this begs the question of literacy and teaching physicians how to communicate in simple, non-medical language.
    • Another great point was the issue of technology as a good unidirectional solution. For example, if the physician wants to know whether something works, an e-mail is very efficient if it does. Leaving a voicemail so that you play tag back and forth only to realize the patient is feeling better is a waste of time.
    • Jay Parkinson referred to himself as the “Geek Squad” for healthcare (think Best Buy computer technicians). Great analogy. He also showed this seemingly very intuitive and easy to use EMR called Myca which I believe he has built.
    • Somebody tied this back to the physician ranking discussion by asking how this new flexibility of business model would be captured and tracked on those sites (e.g., does MD respond to e-mail).
    • I can remember if I jotted this down or one of them said it but I have “More Time. Save Money. Less Costs.” I think this was in response to a question I e-mailed in about how these new models were affecting the compensation and lifestyle of the physicians.

    Phreesia talked about their tablet solution (i.e., electronic clipboard) for the physician’s office. They had an interesting statistic that 49M Americans move each year so address data is constantly changing. (Not to mention plan coverage, drug use, etc.) They are getting 200-300 new MDs a month to sign-up for this.

    I don’t see myself using it, but this is an interesting option. Organized Wisdom talked about their product LiveWisdom which allows users to leverage a live person (I assume MD or RPh or RN.) via chat to address questions they might otherwise contact their MD about. They pay $1.99 per minute.

    • As they admitted, they are limited in scope and often have to refer the patient to an MD. They seemed to me limiting, but creating an opportunity to partner with American Well who helps you find an MD, sees if they have time to talk, and launches an interactive video session and chat session with the MD right then for a pre-agreed upon rate.

    There were two patients there that were involved in lots of feedback sessions. The first was a woman who has lost 144 pounds (w/o going on The Biggest Loser) and has become an online advocate and support mechanism for lots of people using DailyStrength. The second was Amy Tenderich who is a very active diabetic and blogs at DiabetesMine.

    Amy’s story was great. Her blog is very engaging and as Matthew said it is “thought by many to be the #1 blog for patients“. I had a chance to talk with her and her husband and heard a lot about how it started and the response. It is a great story, and she is very knowledgeable and was willing to really push the patient-centric agenda at the conference.

    Someone made the point about linking patient costs to compliance with their care plan which I have blogged about before. I completely agree that the patient should be rewarded for using self-service options (web vs. live agent) and for staying compliant.

    ReliefInsite talked about their solution and shared that 1 in 6 Americans suffer from chronic pain. No matter what the CEO said, he couldn’t do better than the opening patient video which used their solution. (Which he said was a surprise to him.)…seemed like a good, interactive tools with nice reporting.

    Emmi Solutions showed their online educational tool which had videos built in a conversational tone and used animation to help people understand procedures and their disease. Seemed great. Said that informed patients are less likely to sue.

    MedEncentive is one that I will have to spend more time looking at. It plays to the incentive question and rewarding patients and MDs. They talked about a 10:1 ROI and said the medically literate patients have less hospital visits.

    [Completely off topic, but from the conference, I heard someone talking about CouchSurfing which is apparently a “network” where you allow people (that you don’t know) to come sleep on your couch. I thought that died with hitchhiking in the 60s.]

    A consultant from Mercer commented that some large employers with physicians on staff are more effective [at health and cost management] than small health plans. Not sure if that was a complement to employers or an insult to health plans.

    BenefitFocus which automates the set-up of your benefits (imagine no more paperwork to enroll) had a great video showing the future with personal consultants (via hologram), biometric signature, and other cool things. [I have heard good things about them for years although they never returned my phone calls several years ago even with name dropping one of their biggest investors.]

    Virgin Healthmiles was there and talked about their pedometer which is tracked online. They also have an employer kiosk for tracking weight and body fat. Offline, he also told me that they are rolling out connections which will be on the treadmills and other machines at participating gyms. I am a big fan of what they are doing. I believe he said they recommend 7,000 steps a day per person (and think he told me that 2500 is a mile).

    Stan Nowak (my boss) presented the Silverlink story talking about using technology to engage patients, the importance of capturing data, extreme personalization, and showed recent success improving compliance by 3x by rapidly doing a series of pilots.

    • I am not sure I have figured out our seven word description but here’s a few attempts:
      • Patients Are Different. Personalization Matters. Be Proactive.
      • Preference Based Communications Engage Patients & Drive ROI.
      • Segment. Learn. Interact. Empower. Use Communications Appropriately.

    iMetrikus talked about their solution which connects over 50 biometric devices today into backend healthcare systems. They charge $3 PMPM which caused me to raise an eyebrow. It is a great solution and integration is a nightmare, but that seems like a lot of money. But, I am all about ROI. If I can get better return on this than on another project and it exceeds my cost of capital, why wouldn’t I do it.

    iConecto didn’t present but had a booth and introduced a section. But, I love the concept of using play (e.g., Wii) to drive health.

    To be fair, I will even include my notes about Eliza Corporation (our competition). Their CEO and our CEO did a podcast with Matthew the weekend before which you can listen to here. The messaging is fairly similar (although I have a strong bias about why us). She talked about tailoring [of messaging] being the new black. She talked about using clinical and demographic data to drive programs. They are a good company, and it was well done. [I was even flattered that several of their employees said that they read my blog.] Both companies commented on how they feel old (~7 years) compared to a lot of the companies presenting here (~2 years).

    • One thing that I find strange is for two companies that pretty evenly split the healthcare marketplace for Strategic HealthComm is that we are located within 10 miles of each other near Boston.

    At one point, there was a discussion around ROI especially on new technologies and how to get that first big project. One of the panelists said that a 1:1 ROI over two years would be sufficient. [Not true for any company that I have worked at or consulted to.]

    The final panel discussion and closing statements had a lot of good content:

    • Discussion of the patient as a provider and what that could mean.
    • Discussion of importance of sharing information across solutions.
    • The concept of citizen (European) versus patient.
    • From the Wired magazine participant, discussion around fidelity versus flexibility:
      • Disk versus MP3
      • HDTV versus Tivo
      • Microsoft versus Google
    • Importance of moving upstream in care
      • Disease management
      • Wellness
      • Prevention
      • Diet
    • As part of upstream discussion, talked about involving the food companies and used the analogy of inviting the oil companies to a green conference. [I wondered where the MCOs were, the hospital networks, and the politicians.]
    • The author of the book “Demanding Medical Excellence” (who I believe is part of the Health 2.0 staff talked about “random acts of doctoring” and the issue of solving healthcare for the few or the masses.
    • Indu talked about building a new system versus extending and improving the existing system. [A great question]
    • I think it was Matthew that brought up the issue of designing for credibility.

    Wow! If you made it through this thesis, good for you. I hope it’s helpful. It is certainly easier than me trying to find my notes two months from now or sending a bunch of e-mails to people on sections they might find interesting.

    Healthcare Costs Continue To Rise

    No big surprise here. Costs up. Incomes down. Sicker people. More treatment options. More technology. More access. More costs. Administratively complex system. Frustrated patients.

    Maybe the only big surprise that I think exists is the disparity between spending across the country (i.e., how much they spend to treat a condition in one state versus another) and the disparity in outcomes between the US and other countries.

    But, the facts are important and certainly drive the focus on this within the election.

    Here are a few things from a recent article about HC spending doubling by 2017:

    • One of every $5 spent in the US will go to health care by 2017 (more than $4 trillion/year).
    • 6.7% annual increase (3x inflation) is driven by increased demand, higher prices, larger population, and aging population.
    • Government will be responsible for 49% of the costs (versus 46% in 2006) over the next decade.
    • Average spending per person will go from $7,026 (2006) to $13,101 (2017E).

    “Health is projected to consume an expanding share of the economy, which means that policymakers, insurers and the public will face increasingly difficult decisions about the way health care is delivered and paid for,” CMS economists said. (source)

    More On Lack of Sleep

    sleeping.jpgIt is an interesting topic so articles on the impact of lack of sleep always catch my eye. So, yesterday’s USA Today article was no difference. Here are a few things from that article:

    • Nearly 3 in 10 workers have become very sleepy, or even fallen asleep, at work in the past month. (National Sleep Foundation)
    • About 70M Americans have problems sleeping. (Hence a large spike in prescriptions in this category.)
    • Some companies like Union Pacific are even allowing employees to nap during the workday. (Moving from the dotcoms to the blue chips. I remember seeing a person get fired for nodding off in a meeting.)
    • 36% of workers have nodded off or fallen asleep while driving.
    • 12% have been late to work because of sleepiness.
    • The article talks about other issues from lack of sleep including accidents, productivity, impatience with others, and difficulty concentrating. (And, I have talked several times about the correlation with obesity which drives up medical costs dramatically.)
    • Employees with more than one job have the hardest time with 43% saying they only get a good night’s sleep a few nights a month.

    It’s interesting. Not only does it affect employees, but it also affects kids. I hear people talk about their kids going to bed at midnight. Considering kids need 9-12 hours of sleep a night, that can’t work if the kids go to school or the parents work. I always think a good test is how often you wake up before your alarm or your kids wake themselves up.

    Links To A Few Other Blogs

    Here are a few recent blog posts worth reviewing.

    Now, just the other day, I commented that I did see much talk about YouTube in healthcare. In the past 24 hours, two things have come to my attention on this.

    • Allscripts posted a video on YouTube (see below).
    • Glen Beck, a conservative talk show host, had a bad experience at the hospital and put it on YouTube getting 800,000 hits, generating lots of press, and thousands of comments. (see below)

    Chief Marketing Officer

    I think this is an evolving role in healthcare. Mention CMO to most people and they will think you are talking about the Chief Medical Officer. In some industries this has spun into several roles whose titles might include Chief Innovation Officer, Chief Experience Officer or some other title.

    Apparently, this is one of the shortest tenured jobs with CMOs in the top-100 consumer branded companies staying in the role for 23 months (compared to 54 months for CEOs). This is according to SpencerStuart as talked about in a Fast Company article from June 2007.

    “Today’s marketing chiefs are shape-shifting beasts who grasp not only advertising and promotions but also public relations, IT, finance, manufacturing, customer service, and branding across global markets.” (Greg Welch in The Most Dangerous Job in Business – Fast Company, June 2007, pg. 34)

    Of course, everyone has an opinion on marketing. Think about how much fun it is to brainstorm brand positioning or a new tagline.

    With a down economy, marketing faces a different type of scrutiny. Often in a short-sighted way, but it is an easier area to reduce than IT, operations, sales, etc. So, what will a tight economy bring…a focus on ROI based marketing with a continued emphasis on marketing analytics and reporting. The traditional, fun marketing of the movies where it is all about glitz and TV advertisements won’t go away, but I think you will continue to see a more pragmatic focus on what the company gets for the time and money spent on different programs.

    Top Issues That Parents Want HC Providers To Discuss

    I found an interesting USA Today Snapshot on Tuesday (2/26/08) that listed out what parents want healthcare providers to discuss with adolescents. They all seem like things that the parents have a huge role in influencing and driving.

    • 77% said diet / nutrition
    • 67% said exercise / sports
    • 61% said physical changes of puberty
    • 57% said drug use
    • 54% said tobacco use

    I am not sure if its good that parents are involving the providers or a sign of them not wanting to take on the challenge themselves. We talk with our young kids about food and exercise all the time.

    PBMI Day One Notes

    Just getting back from the first day of my first PBMI conference. Very pleased.

    Here are some notes / observations:

    • PBMI was bought in the past 2 years by PSG (Pharmaceutical Strategies Group) which interestingly has numerous ex-Express Scripts people working there.
    • Great opening speaker (E. Kinney Zalesne) who is the co-author of Microtrends (a few blog comments about it). Fascinating set of facts about small (and often influential) groups within the US. You can learn more at their website www.microtrending.com. [Note: I have not read the book yet.]
      • Compared today’s Starbucks economy (everything customized) to the Ford Economy
        • How you look ($12B cosmetic surgery market)
        • Who you marry
        • How you pray
        • Your gender
      • Talked about moving from Megatrends to Tipping Points to Microtrends (versus fads)
      • Said we drink 10x more water today than in 1980 BUT at the same time, the fastest growing beverage segment is energy drinks
      • There are 2-3 new religions formed everyday
      • There are 5M people over 65 working today…which will have huge benefit implications
      • Talked about DIY (do it yourself) Doctors as a group of people who use the Internet to self-diagnose and treat MDs as an ATM (here’s is what I need from you). Described the group as mostly woman and typically younger. Linked the growth in OTCs from $2B to $15B to this trend.
      • Said 3/5 people worry about hospital errors.
      • Good quote: “Better we understand people; the better we can serve them.”
      • Said young people today think of being on prescriptions as normal.
      • Talked about the “30 Winkers” or 16% of adults that get less than 6 hours of sleep a night.
        • 2/10 adults say lack of sleep has led them to make an error at work
        • Sleeping only 6 hours a night increases your probability of being obese by 23% and if you only sleep 4 hours then it goes up to 70+%.
      • Talked about looking for microtrends versus fads.
      • Said they might have a microtrend spotting competition on their website soon.
    • There was a VP of HR who talked about the importance of communications around benefit information.
      • Repeat the message but change it so you don’t de-sensitize the audience.
    • Matt Gibb (Chief Clinical Officer) from Medco presented on Extreme Generic Dispensing with several interesting comments:
      • Talked about how insulin and coumadin are the top two drugs that drive HR admissions
      • Called Therapeutic MAC a “draconian” benefit structure.
        • Therapeutic MAC means that the plan covers $X for a class.  (E.g., you have $30 per month for cholesterol lowering drugs.)
      • Showed a sliding scale of programs which a company could use to influence trend ranging from low impact on consumers and low savings potential to high on both.  Here are a few from low to high.
        • Decision support tools
        • Copay waivers
        • Coupon mailing
        • Maintenance medication program
        • Generous generics (which I guess is a benefit plan with a low copay for generics)
        • 3-tier
        • Co-insurance with POS rebates
        • Brand only deductible
        • Mandatory generics (which I can’t believe is this far up)
        • Mandatory mail
        • PA
        • ST
        • High Performing Formulary (which sounds a lot like the product I ran at Express Scripts called High Performance Formulary)
        • Therapeutic MAC / Reference-Based Pricing / Reverse Copay
      • Showed their 2006 generic fill rate at 58% with the remaining 42% being broken into 4 categories:
        • 17.4% where there was a brand with no generic alternative
        • 4.5% where the brand is less expensive than the generic alternative
        • 11.1% where the brand has a generic alternative (i.e., you should be at 68% GFR today)
        • 9.0% where there will be a generic alternative by 2009 (i.e., you should be at 77% GFR in 2009)
      • I must admit I was confused / surprised when he revealed that their “emerging solutions” for driving generics included the following which I think of as basic programs:
        • Mandatory generics
        • Co-pay waivers
        • Generic step therapy
        • Co-insurance
      • I did think their idea of a benefit design where generics and mail order prescriptions don’t count against your deductible was interesting.
      • I was a little surprised when he mentioned (without discouraging) clients offering generics at $0.
        • The economics (every time I modeled it for clients) don’t work since you have 50% of people getting generics and paying a copay which you just lost.  You would have to improve generics significantly to even breakeven.
      • I (and many people I asked) was surprised with his response to the question of what was a “significant” difference in copays between brand and generic to drive behavior.  His answer was $15-$20 which he said was based on what pharma believes is important to get rebates.
      • I did like the fact that they had clients fund a free first fill of OTC Zyrtec to promote moving to the OTC rather than another Rx.
      • He walked through some of the great statistics they have had from their MyRxChoices web tool.
        • Versus a control group, those that got a letter encouraging them to go to the web and used the website.  58% more likely to change to lower cost drug or channel.  51% conversions from brand-to-generic.
      • He also talked about the importance of rebates in PBM pricing which seemed out of place in the generic discussion.

    Several things that came to mind listening to the presentations and perhaps for another post were:

    • Would / could we ever get to an individualized benefit which allocated X dollars and allowed the patient to choose what was included (e.g., tatoos)?
    • What would be the implication for recruiting / hiring if we could create a healthcare cost index similar to a credit score that didn’t tell potential employers what your medical conditions were but gave them an estimate of your medical costs?
    • What are the implications of driving consumerism to web tools which patients use at work when more and more companies use monitoring tools to track keystrokes and web visits?  Will they accidentally learn about private healthcare information?

    More Debate On AntiDepressant Effectiveness

    I think this is pretty big news. The study that came out over the past few days in the UK has gotten lots of attention. I listened to Dr. Gupta talk about this on CNN this morning validating it although with caveats about drilling into the data. I also talked with a retail pharmacist last night about it. Obviously, with something like 100M antidepressant prescriptions per year, this should be a big deal.

    Full study details.

    The study showed that for those without severe depression a placebo had the same effect as an antidepressant. I know some pharmacists that used to joke about simply telling patients to walk around the block, but their point was that exercise can also have a positive effect on those with depression. This will be an interesting one to see how it plays out.

    Obviously, if you take an antidepressant, don’t stop without talking to your physician.

    And, I am sure this isn’t done. The manufacturers aren’t going to let this go away.

    BTW – The WSJ Health Blog has a good dialog of comments going about this study.