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Pharmaceutical costs fall with less use – with and without a prescription



Closed drug forms continue to attract attention in the state's employee compensation system as a tool to manage the use of prescription drugs and provide evidence-based guidance to physicians prescribing drug treatments to injured workers.

The Official Disability Guidelines Workers Compensation. Drug Formulary, also known as ODG Formulary, has been adopted by several states, including Indiana, Kentucky and Montana.

In a new report, the National Council on Compensation Insurance Inc. examined cost and usage trends in the experience of prescription drugs. after adopting the ODG Formulary, compared two different sets of states.

In states that recently adopted mandatory use of the ODG Formulary ̵

1; Indiana, Kentucky and Montana – reduced drug use contributed to total cost reductions in all three states in the period immediately following. formal implementation. Reductions in drug costs after reforms for each state were comparable to reductions in total drug costs observed in states without drugs during the same periods, according to the report.

In the two states, NCCI first studied the initial effects of form implementation, Arizona and Tennessee reduced total drug costs during each of the subsequent post-reform periods. According to the report, the overall cost reductions were driven by a reduction in the use of medicines, especially those requiring prior authorization.

In addition, opioid use decreased by more than 20% during each post – reform period in both states. NCCI notes that similar reductions in opioid use were observed in non-formal conditions during the same periods as well.


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