HealthLeaders-InterStudy, a leading provider of managed care market intelligence, reports that UnitedHealth Group's (formerly Sierra Health Services) Health Plan of Nevada Senior Dimensions HMO has significantly reduced copays for the drugs that treat the most common chronic conditions. According to the latest Nevada Health Plan Analysis, while the move is expected to add an additional $4.50 per month per member to the health plan's costs, in the long-term it may mean more seniors are taking their medications and have improved health outcomes.

According to plan officials, the senior population is an ideal group for such a pilot program because of its smaller numbers and higher incidence of chronic conditions. Plan officials examined the plan's generic fill rates that demonstrated how important cost is to seniors on the Medicare plan. The most widely prescribed brand-name drugs for diabetes, chronic obstructive pulmonary disease, asthma, high blood pressure and seizures were chosen for the cost reduction. Copays for brand-name drugs have fallen from $20 to $30 a month to $3 to $5.

Studies have shown that failure to take medications as prescribed creates a financial burden on the healthcare industry and that people are more compliant with their medications when those drugs are more affordable.

"This is an interesting move on the part of Health Plan of Nevada as its drug spend will increase by about $2.9 million annually," said Heather Johnston, analyst with HealthLeaders-InterStudy. "However, this program will likely enable the plan to gain market share as seniors with chronic conditions will be drawn to the low copay option. If the lower copay option produces the desired results, more plans, including those for commercial members, may consider this approach."

Why Pharmaceutical Companies Need Health Plan Analysis

Health Plan Analysis identifies key health plan trends, allowing pharmaceutical companies to create comprehensive strategic plans and sales strategies at state and local levels. Updated quarterly, Health Plan Analysis provides a detailed look at plan design and financials, as well as information about mergers, legislation and other influencers driving healthcare in a particular region.

About HealthLeaders-InterStudy

HealthLeaders-InterStudy, a Decision Resources, Inc. company, is the authoritative source for managed care data, analysis and news. For more information, please visit www.HealthLeaders-InterStudy.com.

About Decision Resources, Inc.

Decision Resources, Inc. is a cohesive portfolio of companies that offers best-in-class, high-value information and insights on important sectors of the healthcare industry. Clients rely on this analysis and data to make informed decisions. Please visit Decision Resources, Inc. at www.DecisionResourcesInc.com.

All company, brand or product names contained in this document may be trademarks or registered trademarks of their respective holders.

  For more information, contact:    Lisa Osgood                          Elizabeth Marshall   HealthLeaders-InterStudy             Decision Resources, Inc.   781-296-2606                         781-296-2563   losgood@hl-isy.com                   emarshall@dresources.com 

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SOURCE: HealthLeaders-InterStudy

CONTACT: Lisa Osgood of HealthLeaders-InterStudy, +1-781-296-2606,
losgood@hl-isy.com; or Elizabeth Marshall of Decision Resources, Inc.,
+1-781-296-2563, emarshall@dresources.com

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