tpp 5 paduda victor

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Latest Research on Impact of Rx Drug Abuse on Workers Compensa:on Joseph Paduda, President CompPharma, LLC Dr. Richard A. Victor, Execu:ve Director Workers’ Compensa:on Research Ins:tute

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Third-Party Payer: Latest Research on Impact of Rx Drug Abuse on Workers' Compensation - Joseph Paduda and Dr. Richard Victor

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Page 1: Tpp 5 paduda victor

Latest  Research  on  Impact  of  Rx  Drug  Abuse  on  Workers  

Compensa:on  

Joseph  Paduda,  President  CompPharma,  LLC  

Dr.  Richard  A.  Victor,  Execu:ve  Director  Workers’  Compensa:on  Research  Ins:tute  

Page 2: Tpp 5 paduda victor

Disclosures  

•  Joseph  Paduda  has  financial  rela:onships  with  proprietary  en::es  that  produce  health  care  products  and  services.    These  financial  rela:onships  are:  consul:ng  for  CID,  Millennium  Labs,  and  MedRisk,  Inc.  

•  Richard  A.  Victor  has  disclosed  no  relevant,  real  or  apparent  personal  or  professional  financial  rela:onships.  

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Learning  Objec:ves:  

1.  Specify  workers'  comp  stakeholders'  current  aQtudes  towards  opioids,  the  programs  they  have  in  place  to  address  opioids,  and  how  they  are  measuring  success.  

2.  Explain  the  impact  of  prescrip:on  drugs  on  workers'  compensa:on  costs,  disability,  and  outcomes.  

3.  Compare  the  level  of  understanding  of  execu:ves  to  front-­‐line  staff  to  assess  gaps  in  performance  and  policy  implementa:on.  

4.  Specify  what  types  of  physician  dispensing  of  opioids  exist  and  how  common  these  prac:ces  are  used.  

5.  Analyze  whether  a  ban  on  physician  dispensing  of  opioids  reduces  the  use  of  opioids  or  merely  shiYs  the  dispensing  to  pharmacies.  

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Latest  Research  on  Impact  of  Rx  Drug  Abuse  on  Workers  

Compensa:on  Joseph  Paduda  

President  CompPharma,  LLC  

Page 5: Tpp 5 paduda victor

Opioids are the most

significant problem

facing work comp today.

Page 6: Tpp 5 paduda victor

As a society we consume

of all the opioids prescribed in the world.

80%

pg.  2    

Page 7: Tpp 5 paduda victor

DEA definition

“opioid” Examples include the illicit drug heroin and

pharmaceutical drugs like:

OxyContin®

Vicodin®

codeine morphine

methadone and

fentanyl

pg.  3  

Page 8: Tpp 5 paduda victor

Routine use of opioids for the treatment of chronic nonmalignant pain conditions is not recommended.”

-ACOEM

pg.  4  

Page 9: Tpp 5 paduda victor

The number of narcotics prescriptions per claim has grown 41%, from 0.56 in 2003 to 0.79 in 2011.

-NCCI

pg.  5    

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Respondents 400 total, 2:1 front line: executive ratio 272 completed the survey

Response rate is three times greater than any other survey we’ve conducted over 10 years.

pg.  6  

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Defining the Problem

pg.  7  

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When you hear the word “opioids,” what one or two words instantly come to mind? Addiction /

Dependence

Drug(s) / Narcotics / Drug Name

Abuse

Appropriate / Pain / Pain Killer /

Therapy

Cost

Over Prescribed / Death / Danger /

Epidemic Death

pg.  8  

Page 13: Tpp 5 paduda victor

How concerned is senior management about opioids in workers’ compensation?

pg.  9    

Page 14: Tpp 5 paduda victor

Why? Because these drugs drive up costs, duration – most respondents have figured this out and are starting to track the impact.

pg.  10  

Page 15: Tpp 5 paduda victor

Opioids are perceived as having

overwhelmingly negative

consequences for payers and claimants.

What is the impact of opioids on the costs and outcomes of workers’ compensation claims?

pg.  11  

Page 16: Tpp 5 paduda victor

Whose responsibility is it to manage opioids?

Addicts may be “responsible” but

aren’t capable, and many doctors aren’t able to

address the issue. pg.  12    

Page 17: Tpp 5 paduda victor

How effective or ineffective have PAYERS been in addressing opioids?

pg.  13    

Page 18: Tpp 5 paduda victor

What is causing PAYERS not to effectively address the issue of opioids?

Regulations Don’t Allow Payers to Do Enough

Tools Available Are Inadequate

Not Able to Identify Claims That Would Benefit From Intervention

Other (Please Specify)

Not a Top Priority pg.  14  

Page 19: Tpp 5 paduda victor

How effective have REGULATORS been in addressing opioids?

pg.  15    

Page 20: Tpp 5 paduda victor

Conclusion major problem as it directly affects

claim costs duration

risk ability to control same

As with any WC issue, payers look to regulators to enable solutions – however there are some solutions

currently in place that are delivering results despite the less than

helpful environment.

pg.  16    

Page 21: Tpp 5 paduda victor

Solutions

pg.  17    

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We’re in the early stages of figuring out the problem and developing effective approaches.

pg.  18  

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What is the goal for the stated opioid program(s)?

What is the goal for the stated opioid program(s)?

pg.  19    

Page 24: Tpp 5 paduda victor

What vendor(s) are you working with to address opioids?

pg.  20    

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Please describe what the vendor(s) is(are) doing to address opioids?

There’s a discrepancy between front-line staff and management, which indicates a disconnect with internal communication.

pg.  21    

Page 26: Tpp 5 paduda victor

What is the vendor doing to address opioids?

pg.  22    

Page 27: Tpp 5 paduda victor

How are you measuring the impact of the work of the vendor(s)?

pg.  23  

Page 28: Tpp 5 paduda victor

We’re in this early stage where much of what we’re doing is based on what we think will work, but we don’t yet KNOW.

Do you believe the programs are having a positive effect?

pg.  24  

Page 29: Tpp 5 paduda victor

What should be done?

What is being done? 80% of respondents picked best practices.

vs.

pg.  25    

Page 30: Tpp 5 paduda victor

The ideal solution 80% identified: Peer / physician review for claims – 90 / 180 days

Drug utilization review

Random drug testing

Opioid agreement / contracts

pg.  26    

Page 31: Tpp 5 paduda victor

Please rank the following potential solutions 1-8 in the order that you believe would be most successful in addressing the overall opioid issue starting with 1 as most successful.

pg.  27    

Page 32: Tpp 5 paduda victor

What percentage of the claims with opioid issues do you think an opioid management program would address?

pg.  28    

Page 33: Tpp 5 paduda victor

Takeaways

pg.  29    

Page 34: Tpp 5 paduda victor

Consensus that opioids: Cause addiction /

dependency

Increase disability duration

Increase risk of fraud / abuse

Drive up costs

pg.  30    

Page 35: Tpp 5 paduda victor

Opioid management

is in its infancy.

pg.  31    

Page 36: Tpp 5 paduda victor

There is a wide

divergence between ideal

and actual opioid

management programs.

pg.  32    

Page 37: Tpp 5 paduda victor

Treating physicians

are the crux.

pg.  33    

Page 38: Tpp 5 paduda victor

Conclusion

pg.  34    

Page 39: Tpp 5 paduda victor

pg.  35    

Page 40: Tpp 5 paduda victor

Impact  Of  Banning  Physician  Dispensing  Of  Stronger  Opioids  In  Florida  

Workers  Compensa:on  Research  Ins:tute  

April  23,  2014    

© Copyright 2014 WCRI. All Rights Reserved.

Page 41: Tpp 5 paduda victor

•  Two public policy debates converged – Public health: “Pill mills” that dispense

controlled substances – Cost: Physician dispensing of a wide range of

Rx in workers’ compensation •  Florida legislature banned physician

dispensing of stronger opioids

Policy  Context  In  Florida  

41 © Copyright 2014 WCRI. All Rights Reserved. © Copyright 2014 WCRI. All Rights Reserved. 41

Page 42: Tpp 5 paduda victor

•  High levels of physician compliance with the ban •  Fewer Florida workers received stronger opioids •  Physician-dispensers switched to dispensing

other pain medications rather than continuing stronger opioids

Major  Findings  

42 © Copyright 2014 WCRI. All Rights Reserved. © Copyright 2014 WCRI. All Rights Reserved. 42

Source: Impact of Banning Physician Dispensing of Opioids in Florida (Thumula, 2013)

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Physician  Dispensing  Was  Common  In  Florida,  Higher  Than  Most  States  

0%

10%

20%

30%

40%

50%

60% M

A NY TX

AR

M N

LA

VA

N

C WI

KS

IA

SC

NJ

TN

MO PA

M

I IN

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A CT

M D

IL

FL

CA

43

Prescriptions For 2011/12 Claims With > 7 Days Of Lost Time

Source: The Prevalence And Costs Of Physician-Dispensed Drugs (Wang, Liu, & Thumula 2013)

%  Of  A

ll  Rx

 For  Physician

-­‐Dispe

nsed

 Rx  

© Copyright 2014 WCRI. All Rights Reserved. 43

Prescriptions For 2011/12 Claims With > 7 Days Of Lost Time Source: The Prevalence And Costs Of Physician-Dispensed Drugs (Wang, Liu, & Thumula, 2013)

Page 44: Tpp 5 paduda victor

•  Ban on physician dispensing of schedule II, III controlled substances (effective July 1, 2011) – Few exceptions (can dispense samples, after

surgeries, clinical trials, department of corrections) – No limits on physician dispensing of other

medications •  Requires counterfeit-proof prescription pads

(effective August 29, 2011) •  Register as controlled substance prescribing

physicians (effective January 1, 2012)

HB  7095  (Florida  Pill  Mill  Bill)  

44 © Copyright 2014 WCRI. All Rights Reserved. © Copyright 2014 WCRI. All Rights Reserved. 44

Page 45: Tpp 5 paduda victor

•  Early impact of reform on prescribing and dispensing practices

•  Only injuries that occurred after the law change were included in treatment group

Scope  Of  The  Study  

45 © Copyright 2014 WCRI. All Rights Reserved. © Copyright 2014 WCRI. All Rights Reserved. 45

Page 46: Tpp 5 paduda victor

•  Pre-post policy implementation –  Treatment group: new injuries arising between

July-September, 2011 (Ban effective 7/1/11) – Comparison group: new injuries arising between

July-September, 2010 – Both groups had Rx filled through December of the year

of injury (3-6 months of experience) •  Data:

– 25% of Florida claims –  Indemnity and medical-only claims – Case-mix adjusted

Methods  And  Data  

46 © Copyright 2014 WCRI. All Rights Reserved. © Copyright 2014 WCRI. All Rights Reserved. 46

Page 47: Tpp 5 paduda victor

Pre-­‐  And  Post-­‐Reform  Claim  Characteris:cs  Were  Similar  

47 © Copyright 2014 WCRI. All Rights Reserved.

Pre-­‐Reform   Post-­‐Reform  

Number  Of  Claims   11,867   10,623  

Average  Age   41   41  

%  Female   42%   40%  

%  Indemnity  Claims   24%   22%  

Average  Medical  Payments   $2,464   $2,521  

Average  #  Physician  Visits   3   3  

© Copyright 2014 WCRI. All Rights Reserved. 47

Source: Impact of Banning Physician Dispensing of Opioids in Florida (Thumula, 2013)

Page 48: Tpp 5 paduda victor

Physician  Dispensing  And  Use  Of  Pain  Medica:ons  Unchanged  

48 © Copyright 2014 WCRI. All Rights Reserved.

Pre-­‐Reform   Post-­‐Reform  

Number  of  Rxs   22,255   19,017  

%  Physician-­‐Dispensed  Rxs   52%   52%  

%  All  Pain  Medica:ons   61%   61%  

© Copyright 2014 WCRI. All Rights Reserved. 48

Page 49: Tpp 5 paduda victor

High  Physician  Compliance  With  Reform  In  First  3-­‐6  Months  Of  Cases  

49 © Copyright 2014 WCRI. All Rights Reserved.

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

Pre-Reform Post-Reform

Prop

ortio

n Of

Cla

ims

With

Rx

Physician-­‐Dispensed  Schedule  II,  III  Opioids  

© Copyright 2014 WCRI. All Rights Reserved. 49

Page 50: Tpp 5 paduda victor

•  Of those with physician-dispensed stronger opioids after the ban: – 69% surgical cases – 21% out-of-state providers

Why  Didn’t  Physician-­‐Dispensed    Schedule  II,  III  Opioids  Drop  To  Zero?  

50 © Copyright 2014 WCRI. All Rights Reserved. © Copyright 2014 WCRI. All Rights Reserved. 50

Page 51: Tpp 5 paduda victor

Physician  Dispensing  Of  Stronger  Opioids  Fell  AYer  The  Ban  

3.5%

0.5%

Pre-Reform Post-Reform

Prop

ortio

n Of

Cla

ims

With

Rx

51 © Copyright 2014 WCRI. All Rights Reserved.

Physician-­‐Dispensed  Opioids  (II,  III)  

© Copyright 2014 WCRI. All Rights Reserved. 51

Page 52: Tpp 5 paduda victor

No  Change  In  Pharmacy  Dispensing  Of  Schedule  II,  III  Opioids  

12.0% 12.1%

3.5%

0.5%

Pre-Reform Post-Reform

Prop

ortio

n Of

Cla

ims

With

Rx

52 © Copyright 2014 WCRI. All Rights Reserved.

Physician-­‐Dispensed  Opioids  (II,  III)  

Pharmacy-­‐Dispensed  Opioids  (II,  III)  

© Copyright 2014 WCRI. All Rights Reserved. 52

Page 53: Tpp 5 paduda victor

Physician  Dispensing  Of  NSAIDs  And  Weaker  Opioids  Increased  Post-­‐Reform  

9.0% 9.8%

23.8% 26.0%

3.5%

0.5%

Pre-Reform Post-Reform

Prop

ortio

n Of

Cla

ims

With

Rx

53 © Copyright 2014 WCRI. All Rights Reserved.

Physician-­‐Dispensed  Opioids  (II,  III)  

Physician-­‐Dispensed  Weaker  Opioids  

Physician-­‐Dispensed  NSAIDs  

© Copyright 2014 WCRI. All Rights Reserved. 53

Page 54: Tpp 5 paduda victor

Recap:  Did  The  Florida  Ban  Reduce  The  Overall  Use  Of  Opioids  By  Injured  Workers?    

•  High levels of physician compliance with the ban

•  Fewer workers received stronger opioids

54 © Copyright 2014 WCRI. All Rights Reserved. © Copyright 2014 WCRI. All Rights Reserved. 54

Page 55: Tpp 5 paduda victor

Ques:on  Raised:    Does  Physician  Dispensing  Lead  To  More  Opioids?  

•  Physician-­‐dispensers  switched  to  other  pain  medica:ons  in  the  wake  of  the  ban  — No  change  in  pharmacy-­‐dispensed  schedule  II,  III  opioids  

— Increase  in  percentage  of  claims  with  physician-­‐dispensed  NSAIDs  and  weaker  opioids  

•  This  raises  ques:ons  if  physicians  dispensed  unnecessary  opioids  pre-­‐ban    

•  Upcoming  study  will  examine  longer-­‐term  impact  of  the  ban  

55 © Copyright 2014 WCRI. All Rights Reserved. © Copyright 2014 WCRI. All Rights Reserved. 55

Page 56: Tpp 5 paduda victor

•  To purchase the study, Impact of Banning Physician Dispensing of Opioids in Florida, go to:

•  WWW.WCRINET.ORG

•  For comments/questions about the findings: [email protected]

Follow WCRI on social media:

For  More  Informa:on  

56 © Copyright 2014 WCRI. All Rights Reserved. © Copyright 2014 WCRI. All Rights Reserved. 56