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Advocacy


National Alliance on Mental Illness Ohio



Education, advocacy and support for persons with brain disorders (mental illnesses) and their families.
Ohio's Voice on Mental Illness

State affiliate of the
National Alliance on Mental Illness

Advocates Cite New Report as Evidence Why State Should Abandon Plans to Limit Access to Mental Health Medications

On July 7th, the Coalition for Healthy Communities’ Access to Medication Crisis Committee called on the Ohio Department of Job and Family Services to abandon plans to limit access to certain medications used to treat serious mental illness.

“We believe that limiting access to these medications places many of Ohio’s most vulnerable residents and their families at risk for hospitalization, incarceration, homelessness and the pain and suffering that comes with these chronic illnesses. These outcomes will only serve to increase the cost of serving those with mental illness,” said Jim Mauro, Executive Director of NAMI Ohio (National Alliance on Mental Illness of Ohio) and Chair of the Coalition for Healthy Communities Access to Medication Crisis Committee.

The Coalition points to a research report just released by Driscoll and Fleeter, an independent economic consulting firm located in Central Ohio, which studied the cost impact of a prior authorization policy on medications used to treat individuals with serious mental illness.

According to the report entitled, Estimate of the Net Cost of a Prior Authorization Requirement for Certain Mental Health Medications, “Much research has focused on the costs caused by the implementation of prior authorization requirements for drugs prescribed for the mentally ill in other states. Application of this research to Ohio enables the quantification of millions of dollars of additional costs as an unintended outcome of a prior authorization program for psychotropic drugs.” The report estimates that prior authorization would cost Ohio between $23,220,000 - $38,700,000.

“Clearly, this report shows that any claims that there will be a cost savings as a result of limiting access to mental health medications is in fact unfounded. For this reason, we urge the Ohio Department of Job and Family Services to abandon plans to prior authorize medications used to treat serious mental illness,” said Mauro.

The Coalition for Healthy Communities is a 27 member organization made up agencies that advocate for, or provide services to, Ohioans with mental illness or addictive disorders.

Estimate of the Net Cost of a Prior Authorization Requirement for Certain Mental Health Medications
Executive Summary

Prepared by
Driscoll & Fleeter
for
NAMI Ohio
June 2008

Executive Summary

Background

The Ohio Department of Jobs and Family Services (ODJFS) has under consideration a requirement for prior authorization for the prescription of certain psychotropic drugs for patients with schizophrenia, bipolar disorder, and other serious forms of mental illness.

Alleged Savings

Originally, ODJFS claimed that a prior authorization policy would save $47 million in Medicaid costs. After two revisions, ODJFS cannot quantify any potential savings from prior authorization policies.

Documented Costs

Much research has focused on the costs caused by the implementation of prior authorization requirements for drugs prescribed for the mentally ill in other states. Application of this research to Ohio enables the quantification of millions of dollars of additional costs as an unintended outcome of a prior authorization program for psychotropic drugs.

1) Based on estimates about the number of persons with schizophrenia and bipolar disorder in the Ohio Medicaid program suggest that 33,750 persons with such diagnoses would be affected by prior authorization requirements.

2) Research supports an estimate that prior authorization will increase the number of lapses in care for this population by 6%.

3) Other research shows that 80% of persons whose care lapses suffer expensive adverse consequences.

4) These adverse consequences include higher medical costs, hospitalization, lost wages, homelessness, and incarceration.

5) The table below summarizes prior authorization benefits and costs:

Category

Savings

Additional Cost

Savings in Medicaid Pharmacy Cost

Unknown

Unknown

Additional Administrative Cost (PA review)

Unknown

Positive but Unclear

Additional Compliance Cost by Providers

Unknown

Positive but Unclear

Medical costs of schizophrenic and bipolar patients

Unknown

$17,415,000- $29,025,000

Medical costs of severely depressed patients

Unknown

Not estimated

Medical costs of fee-for-service patients if supplemental rebate plan implemented

Unknown

$5,805,000 - $9,675,000

Cost of lost wages of the severely mentally ill

Unknown

$16,000 per person

Annual emergency shelter cost per person

Unknown

$12,000 per person

Annual mental health services per inmate

Unknown

$10,000 per person

Average annual total per inmate cost in Ohio prisons

Unknown

$25,000 per person

Total

Unknown

$23,220,000 - $38,700,000

To view a copy of the full report, click here


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Jim Mauro, Ex.Dir.