Biotechnology Healthcare - July/August 2008 - (Page 37)

The Impact of Rheumatoid Arthritis And Biologics on Employers and Payers BY PARESH CHAUDHARI, PharmD, MPH In a world that emphasizes the bottom line, direct expenses for chronic conditions often receive more attention than indirect costs. But if healthcare benefits are thought of as an investment, then employers would do well to seek ROI data, such as productivity gains. A ny executive can explain return on investment (ROI) analysis and its importance to an organization. ROI is a ratio that determines the return on each dollar spent, measuring how effectively capital is used to generate profit. For decades, ROI analyses have been applied to asset purchases (such as computer systems) and to various programs (e.g., those used for marketing and training purposes) to make business decisions. So why is it that executives do not consider the health benefits they purchase for their employees an investment? Healthcare consumed 16 percent of the U.S. gross domestic product, or $2.1 trillion, in 2006 (Zhang 2008). As healthcare costs continue to rise, so does the importance of using ROI analysis to assess the financial benefits employers derive from employee healthcare. In this article, the following common issues concerning rheumatoid arthritis (RA) will be addressed from the perspectives of employers and third-party payers: Paresh Chaudhari, PharmD, MPH, is a postdoctoral outcomes research fellow in the Department of Health Policy, Jefferson Medical College, in Philadelphia. He can be reached at «paresh.chaudhari@jefferson.edu». • What is RA? destruction of the soft tissue • How is RA treated? lining the joints. Erosion of • What are the direct the synovial fluid, cartilage, healthcare costs of bone, and ligaments eventreating RA patients? tually leads to deformity of • What is the workthe affected joints, disabilrelated disability in ity, and premature death if RA patients? not treated appropriately Paresh Chaudhari, • How are work pro(Kvien 2004). PharmD, MPH ductivity losses assoMANAGEMENT OF RA ciated with RA measured? RA is best managed by early diag• How do biologic medications nosis to reduce the likelihood of irfor RA affect work producreversible joint damage and other tivity? consequences. In addition to the char• What are the indirect healthacteristic pattern of symptoms, labocare costs to employers? ratory indicators, such as rheumatoid • What is the impact of biologic factor, a distinctive antibody in the medications on payers? blood of RA patients, and erythro• What is the future of biologics cyte sedimentation rate, a test that for RA and for the industry? measures active inflammation in the WHAT IS RA? body, are used to diagnose and measure the severity of RA. RA is a chronic and debilitating Treatments range from simple nondisorder that develops in about 3 percent of the world’s population, af- pharmacologic measures to medicafecting 2 to 4 times more women than tions, and even surgery. The major men (Kvien 2004). RA usually strikes categories of pharmacologic agents used to manage RA include nonpeople between the ages of 35 and steroidal anti-inflammatory drugs; 50 (Burton 2006). To date, the exact cause of RA is unknown, but it is classic (nonbiologic) diseasemodifying anti rheumatic drugs often described as a progressive disease in which components of the im- (DMARDs), such as methotrexate; mune system attack the synovial fluid slow-acting drugs, such as hydroxybetween joints, resulting in inflam- chloroquine and auranofin, which mation that causes swelling, pain, and compose a special subclass of JULY/AUGUST 2008 · BIOTECHNOLOGY HEALTHCARE 37

Table of Contents Feed for the Digital Edition of Biotechnology Healthcare - July/August 2008

Biotechnology Healthcare - July/August 2008 Openers Contents Editorial/David B. Nash, MD, MBA Drug Track Health Plan Confidential Rheumatoid Arthritis A Decade of Trial, Error, False Starts, and Hope What Path Will Comparative Effectiveness Research Take? RA Therapies in Development: A New Generation of Relief Assessing the Full Impact of RA on Employers and Payers Stem Cells: Health Insurance You Can Bank On Specialty Pharmacy Employer to Employer Personalized Medicine Trends Clinical Briefs

Biotechnology Healthcare - July/August 2008

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