The Perfect Storm: Rising Pharma Costs & Part D

As we all know, injured worker treatment regimens relying heavily on costly prescriptions is the unfortunate norm. On top of that, pharma costs are continually rising, surpassing general and medical cost inflation. It seems that Payers can’t catch a break. To add insult to injury, Medicare Part D came into existence as part of the Medicare Modernization Act, which further mandated the inclusion of prescription drug coverage in Medicare Set-Asides. Accounting for prescription drug coverage in the face of inflating pharma costs and excessive prescriptions is the perfect storm for excessive MSAs, resulting in fewer settled claims.

Mitigating MSA Part D Exposure

To reach settlement quickly and with optimal results for both Payer and Claimant, a comprehensive expert approach is necessary. At ANS we mitigate Medicare Set Aside Part D exposure with a unique three step approach.

PharmReview – Pharm Ds examine the worker's current treatment and recommends modifications, often finding similar or superior results that can be achieved using less expensive drugs or alternate therapies, producing improved results for both the worker and the carrier.

PharmIntervention - To address these recommended conversions, an ANS Nurse Expert meets with the injured worker's physician to develop a new pharmaceutical regimen based on the expert review and recommendations. Significant MSA savings are often achieved by formally discontinuing previously prescribed medications, allowing their removal from the MSA.

PharmCompliance - To ensure hard dollar savings and a positive therapeutic outcome, each case requires proactive management. An ANS Clinical Liaison Officer is assigned to every case and employs protocols to ensure the new regimen is adhered to by both the treating physician and claimant.

Experience shows that ANS Solution's comprehensive Pharmacotherapy Review Program can reduce pharma costs by as much as 25%. Settlements are optimized, and achieved faster with lower costs. ANS’ program often leads to the claimant obtaining an improved quality of life.

To learn more contact us at www.ans-solutions.com.

This content was originally posted at www.ans-solutions.com.

The Financial Repercussions of MSAs on Large Loss Claims

Medicare recommends an allocation of funds in a Workers’ Compensation settlement that is set aside to ensure that the injured party’s qualified medical expenses are funded, also known as Medicare Set Aside. These funds must be used to pay for treatment related to the Workers’ Compensation injury, that would otherwise be paid for by Medicare. The financial repercussions of MSAs on settlements can be significant.

Part D Exposure

As part of the Medicare Modernization act of 2003, Medicare indoctrinated what is known as Part D prescription drug coverage beginning in 2006. In other words, an allocation must be made for future prescription drug treatment in a Medicare Set-Aside. Rising pharmacy costs, including medications an injured worker may have been prescribed once in the previous 2 years, along with treatment, has created an environment in which Payers are subject to unreasonably high claim settlements.  The “Prescription Affliction” suffered by Payers is lovingly referred to as Part D exposure and it leads to claims staying open longer or not settling at all. As a result, these claims rack up millions of dollars in cost for Workers’ Compensation Payers.

Reducing Medicare Set Aside and Part D Exposure

A proactive approach is necessary before settlement and preferably early in the process for optimal results. At ANS, we mitigate Medicare Part D exposure with a three pronged approach:

• PharmReview – during this stage, the injured worker’s existing pharmaceutical regimen is assessed and modification recommendations are determined.
• PharmIntervention – a face-to-face discussion with the treating physician to achieve consensus on a modified medication regimen and commitment on a future course of treatment.
• PharmCompliance- an ANS Clinical Liaison Officer ensures compliance with the new prescription treatment plan. This provides a proactive management of the case to optimize hard cost savings.

Only highly credentialed legal nurse experts who are experienced in the treatment of catastrophic injuries, such as those employed by ANS, can provide actionable recommendations based on the individual patient and engage effectively with treating physicians. This technique yields a clear medical action plan that drives down costs while simultaneously improving the quality of care for the injured worker, allowing for reasonable settlement of the claim.

ANS’s pharmaceutical cost containment technique has reduced pharma costs by up to 25%. To find out more about reducing MSA and Part D exposure, contact us today.

This post was originally published at http://ans-solutions.com/.