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The State of ADAPs Review of the 2011 National ADAP Monitoring Project Annual Report and Update on the ADAP Crisis. Britten Pund National Alliance of State & Territorial AIDS Directors July 5, 2011. Presentation Agenda. Highlights from the 2011 National ADAP Monitoring Project Annual Report
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The State of ADAPsReview of the 2011 National ADAP Monitoring Project Annual Report and Update on the ADAP Crisis Britten Pund National Alliance of State & Territorial AIDS Directors July 5, 2011
Presentation Agenda • Highlights from the 2011 National ADAP Monitoring Project Annual Report • Update on the ADAP Crisis • Questions and Answers
National Alliance of State & Territorial AIDS Directors (NASTAD) • Represents the nation’s chief health agency HIV/AIDS and viral hepatitis staff in all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands and the U.S. Pacific Islands • Provides technical assistance and other support to health department HIV/AIDS and viral hepatitis programs • Provides national leadership on HIV/AIDS and viral hepatitis policy and programs • Educates about and advocates for necessary federal funding
Highlights from the 2011 National ADAP Monitoring Project Annual Report
Respondents • All ADAPs receiving federal ADAP earmark funding through the Ryan White Program were surveyed. • 57 jurisdictions were surveyed in September 2010; 52 responded. • 57 jurisdictions were surveyed in February 2011; 49 responded. • Non-responders represent <1% of estimated living HIV and AIDS cases in the United States.
Requested Data • Survey requests data and other program information for: • A one-month period (June 2010 or December 2010) • The current fiscal year (FY2010) • Other periods as specified • Data offers a monthly “snapshot” comparison from previous survey periods.
Module One • Detailed information related to : • ADAP budgets • Client enrollment and utilization • Client demographics • Program eligibility • Program management and administration
Module Two and Module Two Supplement • Detailed information related to: • Prescription distribution and payment methods • Expenditures and prescriptions filled • Insurance coordination • ADAP coordination with Medicare Part D • ADAP coordination with Pre-existing Condition Insurance Plans (PCIPs) • Updated client enrollment and utilization • Hepatitis treatments
The National ADAP Budget • In FY2010, the national ADAP budget grew to $1.79 billion, a 13% increase from FY2009. • All funding streams increased incrementally over the last year.
ADAP Emergency Funding • In August 2010, the Obama Administration reprogrammed $25 million to address ADAP waiting lists and other unmet ADAP needs. • Funding awards were made to 30 states. • Funding amounts ranged from $38,111 in Alaska to $6.9 million in Florida.
Cost-recovery • “Cost-recovery” for medications purchased through ADAP (other than drug rebates) represented $50.5 million in FY2010. • Private insurance recovery represented 58% of all cost-recovery.
ADAP Expenditures, FY2009 • In FY2009, ADAPs expended $1.4 billion on prescription drugs, representing 85% of all ADAP expenditures. • ADAPs expended $176.1 million on insurance payments, representing 10% of all ADAP expenditures. • Two percent of ADAP funds were expended for program administration costs.
ADAP Client Enrollment and Utilization • On average, 2,806 new clients were enrolled in ADAP each month in FY2009.
ADAP Client Gender, Race/Ethnicity, and Age • Seventy-seven percent (77%) of ADAP clients are male. • Blacks and Hispanics comprise 55% (33% and 22% respectively) of ADAP clients served. • Almost half (48%) of ADAP clients are between the ages of 45 and 64. • Seventy-five percent (75%) of ADAP clients had income levels at or below 200% of the Federal Poverty Level (FPL).
ADAP Client Insurance Status • Twenty-two percent (22%) of ADAP clients had private insurance. • Seven percent (7%) of ADAP clients were dual beneficiaries of both Medicaid and Medicare.
ADAP Eligibility Criteria • ADAP income eligibility in June 2010 ranged from 200% FPL in eight states to 500% FPL in six. • Fourteen ADAPs reported having asset limits in place in June 2010.
ADAP Management Policies • Thirty-three ADAPs have specific ADAP management policies in place, including: • Three ADAPs (6%) require client cost-sharing • Three ADAPs (6%) limit clients to a maximum number of prescriptions per client per month • Twelve ADAPs (24%) maintain a clinical criteria for client access to some medications on the ADAP formulary • Twenty-six ADAPs (51%) require prior authorization for clients access to some medications on the ADAP formulary
ADAP Client Utilization • ADAPs provided medications to 127,998 clients in December 2010. • Client utilization increased by 2% between June 2009 and December 2010; client utilization decreased by 2% between June 2010 and December 2010.
ADAP Drug Expenditures • ADAP drug expenditures were $146,457,975 in June 2010. • Ten states accounted for 76% of all drug spending; five states accounted for 57% of all drug spending.
ADAP Prescriptions Filled • In June 2010, the average expenditure per prescription was $325, compared to $302 in June 2009, representing an 8% increase. • Average expenditures per prescription was significantly higher for antiretrovirals ($491) than non-antiretrovirals ($67 for “A1” OIs and $64 for all other drugs). • ADAPs filled a total of 451,148 prescriptions in June 2010, representing an increase of 8% compared to June 2009.
ADAP Drug Expenditures and Prescriptions Filled (Including Drug Purchases and Co-Payments), by Drug Category, June 2010
ADAP Drug Expenditures and Prescriptions Filled (Including Drug Purchases and Co-Payments), June 2010
ADAP Insurance Coordination • In June 2010, 110,338 ADAP clients were served through insurance coordination. • Clients served through insurance coordination more than tripled since June 2009. • Spending on insurance purchasing/continuation represented an estimated $139 per capita in June 2010, about 15% of the average monthly cost per client, based on drug expenditures, in that month ($949).
ADAP Coordination with Pre-existing Condition Insurance Plans • As of December 2010, 12 ADAPs reported having the ability to enroll clients in PCIPs. • Eleven states had 151 clients enrolled with plans to continue enrolling additional clients. • The average monthly cost per client served in a PCIP was $529 in December 2010, approximately 56% of the annual average cost per client, based on drug expenditures ($949) in that month.
ADAP Coordination with Medicare Part D • To meet the federal requirements and maintain appropriate medication coverage for their clients, 53 ADAPs have developed policies to coordinate with the Part D benefit.
ADAP Coordination with Medicare Part D • Twenty-six ADAPs reported signing a data sharing agreement with CMS in December 2010 (see Table 13). • Twenty-three ADAPs, including 9 who do not have a data sharing agreement with CMS, have a data sharing agreement with at least one other entity, including Medicaid, Medicare, private insurance providers, and other entities (e.g. Pharmacy Benefits Managers).
Patient Protection and Affordable Care Act • Patient Protection and Affordable Care Act (PPACA) signed into law in March 2010. • Some portions of reform that will impact ADAPs specifically are: • Medicaid eligibility expansion (2014); • Increase in the number of individuals covered by insurance plans (2014); • ADAPs’ Medicare Part D expenditures counting toward True Out Of Pocket (TrOOP) expenditures (2011); • Narrowing and closing of the Medicare Part D “doughnut hole (ongoing);” • An increase in the Medicaid rebate amount for purchased drugs; and (2010) • 340B pricing transparency.
Pharmaceutical Partners Contributions • In May 2010, pharmaceutical partners augmented current agreements with ADAPs including: • Providing deeper discounts; • Increased rebates; and/or • Price freezes to ADAP. • Pharmaceutical partners expanded the reach of Patient Assistance Programs (PAPs) and participated in Welvista for waiting list clients.
ADAP Waiting Lists • Over the course of 2010, 19 ADAPs reported a waiting list. • Several ADAPs decreased income eligibility requirements and disenrolled clients from ADAP in order to address shortfalls. • In FY2010, some ADAPs began transitioning clients off of ADAP and onto PAPs as a means of cost-containment. These clients were directed to seek access to medications through PAPs.
ADAP Waiting Lists, as of June 30, 2011 8,615 individuals in 13 states* Alabama: 73 individuals Arkansas: 40 individuals Florida: 3,562 individuals Georgia: 1,630 individuals Idaho: 20 individuals Louisiana: 824 individuals** Montana: 29 individuals North Carolina: 292 individuals Ohio: 485 individuals South Carolina: 810 individuals Utah: 25 individuals Virginia: 817 individuals Wyoming: 8 individuals *As a result of ADAP emergency funding, Hawaii, Idaho, Iowa, Kentucky, South Dakota, and Utah eliminated their waiting lists; Idaho reinstituted a waiting list in February 2011 and Utah reinstituted a waiting list in May 2011. **Louisiana has a capped enrollment on their program. This number represents their current unmet need.
ADAPs with Cost-containment, as of April 13, 2011 Arizona: reduced formulary Arkansas: reduced formulary, lowered financial eligibility to 200% FPL (disenrolled 99 clients in September 2009) Colorado: reduced formulary Florida: reduced formulary, transitioned 5,403 clients to Welvista from February 15, 2011 to March 31, 2011 Georgia: reduced formulary, implemented medical criteria, participating in the Alternative Method Demonstration Project (AMDP) Idaho: capped enrollment Illinois: reduced formulary, instituted monthly expenditure cap ($2,000 per client per month) Kentucky: reduced formulary Louisiana: discontinued reimbursement of laboratory assays North Carolina: reduced formulary
ADAPs with Cost-containment, as of April 13, 2011 (continued) North Dakota: capped enrollment, instituted annual expenditure cap, lowered financial eligibility to 300% FPL (grandfathered in current clients above 300%FPL) Ohio: reduced formulary, lowered financial eligibility to 300% FPL (disenrolled 257 clients in July 2010) Puerto Rico: reduced formulary South Carolina: lowered financial eligibility to 300% FPL (grandfathered in current clients above 300% FPL) Utah: reduced formulary, lowered financial eligibility to 250% FPL (disenrolled 89 clients in FY2010) Virginia: reduced formulary, transitioned 207 clients onto waiting list and PAPs, only distributing 30-day prescription refills Washington: instituted client cost sharing, reduced formulary (for uninsured clients only), only paying insurance premiums for clients currently on antiretrovirals Wyoming: reduced formulary, instituted client cost sharing