An Economic Evaluation of The Budget Impact of Precision Medicine Testing for The Treatment of Psoriasis
Main Article Content
Keywords
budget impact, percision medicine, psoriasis, cost savings, biologics, wasted-spend
Abstract
Objective: This study was a budget impact analysis based on a budget impact model (BIM) and formularies from different commercial payer types (excluding Medicare and Medicaid). The primary objective of this study was to determine the potential cost savings utilizing precision medicine testing of biologics in patients with psoriasis. The evaluation projects the predicted cost savings of multiple formulary scenarios, simulated through the BIM.
Methods: A budget impact model was constructed to simulate the impact of Mind.Px, a transcriptomic predictive precision medicine test that can discriminate between psoriasis responders and non-responders, on psoriasis drug usage. This model simulated the impact of Mind.Px on different formularies and cost scenarios, considering the efficacy of individual biologics. All formularies used were acquired from the Policy Reporter database.
Results: Several payers representing a spectrum of covered lives populations were used to simulate the impact of Mind.Px through the budget impact model. The budget impact model returned cost savings as low as $5,138 annually to as high as $13,141 annually. Based on the analysis of this subset of payers, the model yielded average cost savings of $8,492 annually as well as an average wasted spend savings of $16,567. All Savings are represented on an annual per patient basis.
Conclusions: These savings demonstrate the potential cost savings that precision medicine testing can provide to ease the economic burden on payers, clinics/hospital systems, and patients, and may fill the need for a better method to prescribe drugs for the treatment of psoriasis.
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