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Comparative Effectiveness Research: Do Employers Care? What Will They Do?

Comparative Effectiveness Research: Do Employers Care? What Will They Do?

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On behalf of the National Pharmaceutical Council, the Benfield Group conducted a survey in December 2010 to assess the attitudes of employers on comparative effectiveness research (CER).

Key Findings:

Employers know about CER
Employers care about CER and view it as a way to improve health benefit decision-making
Employers know how they will use CER findings
Employers will primarily look to the Patient-Centered Outcomes Research Institute (PCORI) as a trusted source of CER information
CER findings must include workplace-relevant information (when appropriate) to meet the needs of employers

Why employers matter to the CER conversation
•Employers provide health insurance coverage for 170 million people, or about two-thirds of the US population.
•Employers fund roughly one-third of all healthcare expenditures and about 40 percent of spending on prescription drugs in the US.
•Of large employers, a majority use approaches that are designed to promote longer-term health and productivity outcomes as cornerstones of their cost management strategy, rather than focusing narrowly on reducing short-term benefit costs through price-focused negotiation and cost-shifting tactics.
•CER will have an impact if findings are translated into practice. But the Institute of Medicine (IOM) states that it takes an average of 17 years for medical knowledge to be incorporated into clinical practice in the U.S.
•Employers are positioned to translate CER findings into real-world application through workplace health programs and benefit design.

About the Survey
In December 2010, the Benfield Group invited health and pharmacy benefit decision-makers and influencers to participate in a 15-minute online survey. To supplement the 75 completed surveys, Benfield completed 25 in-depth interviews with employers (21), employer health coalition leaders (2) and employee benefit consultants (2).

Among those surveyed were employee benefit directors, medical directors and other health management professionals with health management and pharmacy benefit decision-making authority or influence in large (5,000 or more employees), self-insured corporations.

Of the 75 companies surveyed, 47 percent had more than 20,000 employees, and all companies were at least 50 percent self-insured, with 88 percent of the companies at least 75 percent self-insured. Of respondents, 81 percent indicated they are decision-makers or influencers when it comes to employee health strategy, with the balance indicating they provide input.
On behalf of the National Pharmaceutical Council, the Benfield Group conducted a survey in December 2010 to assess the attitudes of employers on comparative effectiveness research (CER).

Key Findings:

Employers know about CER
Employers care about CER and view it as a way to improve health benefit decision-making
Employers know how they will use CER findings
Employers will primarily look to the Patient-Centered Outcomes Research Institute (PCORI) as a trusted source of CER information
CER findings must include workplace-relevant information (when appropriate) to meet the needs of employers

Why employers matter to the CER conversation
•Employers provide health insurance coverage for 170 million people, or about two-thirds of the US population.
•Employers fund roughly one-third of all healthcare expenditures and about 40 percent of spending on prescription drugs in the US.
•Of large employers, a majority use approaches that are designed to promote longer-term health and productivity outcomes as cornerstones of their cost management strategy, rather than focusing narrowly on reducing short-term benefit costs through price-focused negotiation and cost-shifting tactics.
•CER will have an impact if findings are translated into practice. But the Institute of Medicine (IOM) states that it takes an average of 17 years for medical knowledge to be incorporated into clinical practice in the U.S.
•Employers are positioned to translate CER findings into real-world application through workplace health programs and benefit design.

About the Survey
In December 2010, the Benfield Group invited health and pharmacy benefit decision-makers and influencers to participate in a 15-minute online survey. To supplement the 75 completed surveys, Benfield completed 25 in-depth interviews with employers (21), employer health coalition leaders (2) and employee benefit consultants (2).

Among those surveyed were employee benefit directors, medical directors and other health management professionals with health management and pharmacy benefit decision-making authority or influence in large (5,000 or more employees), self-insured corporations.

Of the 75 companies surveyed, 47 percent had more than 20,000 employees, and all companies were at least 50 percent self-insured, with 88 percent of the companies at least 75 percent self-insured. Of respondents, 81 percent indicated they are decision-makers or influencers when it comes to employee health strategy, with the balance indicating they provide input.

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Published by: National Pharmaceutical Council on Jun 23, 2011
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Comparative Effectiveness Research:
Do Employers Care? What Will They Do?
 
ChuCk Reynolds, Ms,
President, Employer Practice
diana MaRtin,
Senior Consultantboth o The Beneld Group
RobeRt W. dubois, Md, Pd,
Chie Science Ocer
kiMbeRly WestRiCh, Ma,
Research Directorboth o the National Pharmaceutical Council
A White Paper Prepared For NPC By
 June 2011
 
 Written by:
ChuCk Reynolds, Ms,
President, Employer Practice
diana MaRtin,
Senior Consultantboth o The Beneld Group
RobeRt W. dubois, Md, Pd,
Chie Science Ocer
kiMbeRly WestRiCh, Ma,
Research Directorboth o the National Pharmaceutical CouncilThe
Benfeld Group
is a health care market research, strategy and communications rm dedicatedto improving health care value through meaningul inormation, clear communication and innovativecollaboration along the health care supply chain. The
National Pharmaceutical Council
is a health policy research organization dedicated to theadvancement o good evidence and science, and to ostering an environment in the United States thatsupports medical innovation. Founded in 1953 and supported by the nation’s major research-basedpharmaceutical companies, NPC ocuses on research development, inormation dissemination, andeducation on the critical issues o evidence, innovation and the value o medicines or patients.
Acknowledgments:
The authors would like to acknowledge Diana Enyedi, Jennier Graf, AndreaHoelich, Gary Persinger, and Sabrina Siddiqui or their thoughtul contributions to this report.
Funded and published by 
the National Pharmaceutical Council, 2011.To order copies o this report, please visit www.npcnow.org.© Copyright 2011
 
AbstrAct
Recent Federal legislation, including the Patient Protection and Aordable Care Act(ACA), has launched a comprehensive national eort to conduct and disseminatecomparative eectiveness research (CER). As purchasers o health care oremployees, dependents and retirees, employers stand to benet rom potentialquality and cost impacts o CER. Further, because they can inuence patients,providers and provider organizations through health programs and benet design,employers have the ability to contribute to the translation o CER ndings intoclinical practice, enabling quality and cost improvements.Our research indicates that a sizable segment o employers (specically, largeand sel-insured employers who comprised our sample) are aware o CER andexpect that CER ndings will help them achieve health improvement and costmanagement goals. These employers have clear ideas about how they would usehealth programs and benet strategies to help translate CER ndings into practice.Our research urther indicates that employers would value CER outcomes related to workorce productivity, and believe it is important or CER research to consider theimpact o alternative treatments on absence, disability and work perormance whenappropriate. The Patient-Centered Outcomes Research Institute (PCORI) is by aremployers’ most trusted source o CER inormation; and while some employers planto directly monitor CER developments, most will rely on their health plans, consultantsand Pharmacy Benet Managers (PBMs) to keep them apprised o relevant mattersand to help identiy and implement eective program and policy actions.Employers are important health care stakeholders, and–particularly i ndingsaddress their interests in workorce productivity as well as employee health andhealth care costs–employers will be an ally in the eort to translate CER ndingsinto better clinical practice, improved health, enhanced productivity and lower costs.
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