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Medication Adherence Leads To Lower Health Care Use And Costs Despite Increased Drug Spending

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Abstract
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Researchers have routinely found that improved medication adherence--getting people to take medicine prescribed for them--is associated with greatly reduced total health care use and costs. But previous studies do not provide strong evidence of a causal link. This article employs a more robust methodology to examine the relationship. Our results indicate that although improved medication adherence by people with four chronic vascular diseases increased pharmacy costs, it also produced substantial medical savings as a result of reductions in hospitalization and emergency department use. Our findings indicate that programs to improve medication adherence are worth consideration by insurers, government payers, and patients, as long as intervention costs do not exceed the estimated health care cost savings.

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  • Preprint Article
  • 10.31235/osf.io/5rxvy
Health care use as an aspect of immigrant integration? An analysis of cost convergence among new immigrants and natives in Finland
  • Dec 18, 2024
  • Maria Vaalavuo + 3 more

Existing research has shown that immigrants’ health care use and costs are lower compared to native population. The aim of this study is to analyse 1) how average health care costs differ between newly arrived immigrants and natives in Finland, 2) whether the costs of immigrants converge to the level of natives over time, and 3) how other factors of integration are associated with convergence in health care use. We use individual-level register data on total working-age (18-64) population living in Finland between 2008 and 2017 combined with their health care use and costs in public specialised health care sector from the national Care Register for Health Care. Our analysis sample includes all working-age immigrants who arrived in Finland between 2008-2010 and divided in eight groups by region of origin. We use a 10 per cent random sample of native-born Finns as a comparison group. Information on earlier arrived immigrants is used in additional analyses. We follow the study population’s (n=296,956) health care costs from 2011 to 2017. To illustrate trajectories in health care costs, we employ growth curve models. Our results show that immigrants have lower health care costs compared to natives and they do not converge to the native level over a 7-year observation period. This finding holds also among immigrants who have more local social, cultural, and economic capital. Notably, the costs differ remarkably between sectors of health care, different immigrant groups, and by other factors. However, the determinants of health care costs appear to function relatively similarly among natives and immigrants. Information on these differences is crucial for assessing equity in the distribution of health care. Our results can also be used to improve the accuracy of regional predictions of models that forecast health expenditures at the regional level in Finland. In addition to better health among immigrants, lower health care use and costs among immigrants may indicate, for example, different approaches to health care use or unmet needs due to barriers to accessing health care services. It seems that the ‘healthy immigrant effect’ is an oversimplification of the reality. To make informed policy decisions, future research is needed to uncover the factors behind the lower health care use among immigrants and whether this affects health outcomes and health inequality.

  • Research Article
  • Cite Count Icon 18
  • 10.1111/acem.12054
Frequent Emergency Department Use Among Released Prisoners With Human Immunodeficiency Virus: Characterization Including a Novel Multimorbidity Index
  • Jan 1, 2013
  • Academic Emergency Medicine
  • Jaimie P Meyer + 4 more

The objective was to characterize the medical, social, and psychiatric correlates of frequent emergency department (ED) use among released prisoners with human immunodeficiency virus (HIV). Data on all ED visits by 151 released prisoners with HIV on antiretroviral therapy (ART) were prospectively collected for 12 months. Correlates of frequent ED use, defined as having two or more ED visits postrelease, were described using univariate and multivariate models and generated medical, psychiatric, and social multimorbidity indices. Forty-four (29%) of the 151 participants were defined as frequent ED users, accounting for 81% of the 227 ED visits. Frequent ED users were more likely than infrequent or nonusers to be female; have chronic medical illnesses that included seizures, asthma, and migraines; and have worse physical health-related quality of life (HRQoL). In multivariate Poisson regression models, frequent ED use was associated with lower physical HRQoL (odds ratio [OR] = 0.95, p = 0.02) and having not had prerelease discharge planning (OR = 3.16, p = 0.04). Frequent ED use was positively correlated with increasing psychiatric multimorbidity index values. Among released prisoners with HIV, frequent ED use is driven primarily by extensive comorbid medical and psychiatric illness. Frequent ED users were also less likely to have received prerelease discharge planning, suggesting missed opportunities for seamless linkages to care.

  • Research Article
  • Cite Count Icon 56
  • 10.2337/dc06-1013
Impact of a Managed-Medicare Physical Activity Benefit on Health Care Utilization and Costs in Older Adults With Diabetes
  • Dec 27, 2006
  • Diabetes Care
  • Huong Q Nguyen + 7 more

The purpose of this article was to determine the effects of a managed-Medicare physical activity benefit on health care utilization and costs among older adults with diabetes. This retrospective cohort study used administrative and claims data for 527 patients from a diabetes registry of a staff model HMO. Participants (n = 163) were enrolled in the HMO for at least 1 year before joining the Enhanced Fitness Program (EFP), a community-based physical activity program for which the HMO pays for each EFP class attended. Control subjects were matched to participants according to the index date of EFP enrollment (n = 364). Multivariate regression models were used to determine 12-month postindex differences in health care use and costs between participants and control subjects while adjusting for age, sex, chronic disease burden, EFP attendance, prevention score, heart registry, and respective baseline use and costs. Participants and control subjects were similar at baseline with respect to age (75 +/- 5.5 years), A1C levels (7.4 +/- 1.4%), chronic disease burden, prevention score, and health care use and costs. After exposure to the program, there was a trend toward lower hospital admissions in EFP participants compared with control subjects (13.5 vs. 20.9%, P = 0.08), whereas total health care costs were not different (P = 0.39). EFP participants who attended > or = 1 exercise session/week on average had approximately 41% less total health care costs compared with those attending <1 session/week (P = 0.03) and with control subjects (P = 0.02). Although elective participation in a community-based physical activity benefit at any level was not associated with lower inpatient or total health care costs, greater participation in the program may lower health care costs. These findings warrant additional investigations to determine whether policies to offer and promote a community-based physical activity benefit in older adults with diabetes can reduce health care costs.

  • Research Article
  • Cite Count Icon 2
  • 10.12788/fp.0438
Effect of Multidisciplinary Transitional Pain Service on Health Care Use and Costs Following Orthopedic Surgery.
  • Dec 1, 2023
  • Federal practitioner : for the health care professionals of the VA, DoD, and PHS
  • Minkyoung Yoo + 7 more

Opioid use disorder is a significant cause of morbidity, mortality, and health care costs. A transitional pain service (TPS) approach to perioperative pain management has been shown to reduce opioid use among patients undergoing orthopedic joint surgery. However, whether TPS also leads to lower health care use and costs is unknown. We designed this study to estimate the effect of TPS implementation relative to standard care on health care use and associated costs of care following orthopedic surgery. We evaluated postoperative health care use and costs for patients who underwent orthopedic joint surgery at 6 US Department of Veterans Affairs medical centers (VAMCs) between 2018 and 2019 using difference-in-differences analysis. Patients enrolled in the TPS at the Salt Lake City VAMC were matched to control patients undergoing the same surgeries at 5 different VAMCs without a TPS. We stratified patients based on history of preoperative opioid use into chronic opioid use (COU) and nonopioid use (NOU) groups and analyzed them separately. For NOU patients, TPS was associated with a mean increase in the number of outpatient visits (6.9 visits; P < .001), no change in outpatient costs, and a mean decrease in inpatient costs (-$12,170; P = .02) during the 1-year follow-up period. TPS was not found to increase health care use or costs for COU patients. Although TPS led to an increase in outpatient visits for NOU patients, there was no increase in outpatient costs and a decrease in inpatient costs after orthopedic surgery. Further, there was no added cost for managing COU patients with a TPS. These findings suggest that TPS can be implemented to reduce opioid use following joint surgery without increasing health care costs.

  • Research Article
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Urgent Care and Emergency Department Visitors: A Latent Class Analysis.
  • Mar 1, 2026
  • Annals of emergency medicine
  • Justina Mounir Henein + 1 more

Urgent Care and Emergency Department Visitors: A Latent Class Analysis.

  • Research Article
  • Cite Count Icon 62
  • 10.1002/(sici)1099-176x(199803)1:1<23::aid-mhp3>3.0.co;2-q
Cost benefits of substance abuse treatment: an overview of results from alcohol and drug abuse.
  • Mar 1, 1998
  • The Journal of Mental Health Policy and Economics
  • Harold D Holder

BACKGROUND AND METHODS: The treatment of substance abuse is an important health service available in all industrialized countries throughout the world. Cost of treatment and its benefit or economic value is an important policy issue. Reduction in health care cost is one alternative way to measure benefits. This paper reviews a series of studies (all from the US) which address the cost-benefit question. Most studies have compared the monthly costs prior to initiation of substance abuse treatment with the costs following initiation. RESULTS FROM STUDIES OF ALCOHOLISM TREATMENT: Many studies have found that, over the time prior to alcoholism treatment initiation, total monthly health care costs increased and costs substantially increased during the 6-12 months prior to treatment. Following treatment initiation, monthly total medical care costs declined and the overall trend was downward, i.e., the slope was negative. In contrast to the use of general health care where women typically utilize more medical care than men, overall medical care costs were found to be similar. Alcoholics of different ages, however, showed distinct medical care costs, i.e., younger patients experienced greater declines in medical care costs following alcoholism treatment initiation. Inpatient treatment is most affected by alcoholism treatment. In some cases, outpatient treatment is actually increased in response to aftercare health care utilization, but at a substantially lower cost than inpatient treatment. If the alcoholism condition can be treated on an outpatient basis, then the total cost of such treatment is obviously lower and the potential for a cost-offset net effect is substantially increased. COST BENEFITS OF DRUG ABUSE TREATMENT: There have been few drug abuse treatment cost-benefit research studies. Early studies found that there was a decline in sickness and medical care utilization associated with initiation of treatment. A recent study found a substantial reduction in total health care costs following initiation of drug abuse treatment. Utilization of inpatient care and its associated costs are most affected by the absence and/or presence of treatment. SUMMARY AND CONCLUSION: This review describes the research findings from a number of cost-offset or cost-benefit studies of alcoholism and drug abuse treatment. In broad terms the findings of this research can be summarized as follows. (i) Untreated alcoholics or drug dependent persons use health care and incur costs at a rate about twice that of their age and gender cohorts. (ii) Once treatment begins, total health care utilization and costs begin to drop, reaching a level that is lower than pre-treatment initiation costs after a two- to four-year period. The conclusion is based on similar findings across different patient populations using a variety of research designs. (iii) There are no apparent gender differences in the utilization and associated costs before and after treatment initiation. (iv) There are age differences that support the value of early intervention. Younger treated substance abuse patients have pre-treatment total cost levels that are lower than pre-treatment levels for older patients. IMPLICATIONS OF HEALTH POLICY: The results of research provide consistent support for the cost benefits of substance abuse treatment. From a health policy perspective, such results are promising if the objective is to demonstrate that treatment investment can pay for all or part of its associated costs through reductions in other health care costs. One can hold a contrary position, i.e., lower future medical care costs for substance abusers could reflect denial of essential care. IMPLICATIONS FOR FURTHER RESEARCH: The studies that have addressed the potential cost offset of substance abuse treatment have been largely based upon overall or aggregate effects across all forms of substance abuse treatment. There have been no studies of the cost offset of specific treatment modalities, though this is what the next generation of studies should do

  • Research Article
  • 10.1016/j.jmh.2025.100386
Health care use as an aspect of immigrant integration? An analysis of health care cost convergence among new immigrants and natives in Finland
  • Dec 11, 2025
  • Journal of Migration and Health
  • Maria Vaalavuo + 3 more

Health care use as an aspect of immigrant integration? An analysis of health care cost convergence among new immigrants and natives in Finland

  • Research Article
  • 10.1002/oby.70208
Health Care Costs and Use of Patients Prescribed Four Different Obesity Medications.
  • Jun 1, 2026
  • Obesity (Silver Spring, Md.)
  • Kristina H Lewis + 10 more

This study compared changes in health care costs and use across cohorts initiating four obesity medications (OMs). Commercial insurance claims were used to identify new initiators of phentermine (n = 136,788), phentermine-topiramate-ER (n = 13,888), naltrexone-bupropion-SR (n = 28,712), or liraglutide (n = 49,266) for obesity. Multivariable difference-in-differences analyses compared the three newer drugs to phentermine for change in total annual prescription drug and health care costs, outpatient visits, and acute care use (combined emergency department visits and hospital stays). Up to 3 years after OM initiation, prescription and total health care costs were higher for all three newer OM cohorts relative to phentermine, with liraglutide having the greatest comparative increase in annual costs (e.g., total costs 73.6% [70.9%, 76.3%] higher in year 1). Primary care physician visit frequency was slightly lower for the newer OMs (e.g., -12.6% [-13.6%, -11.6%] in year 1 for liraglutide). The cost of OM treatment, even for medications that preceded highly effective weekly incretin analogues, appeared to increase overall prescription spending and total health care costs. Yet, other than a relative decrease in primary care physician visit frequency, more costly OMs were not associated with favorable changes in health care use patterns compared to generic phentermine. Reductions in OM cost and other interventions to support their longer-term use may be needed to fully realize the promise of these medications.

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  • Research Article
  • Cite Count Icon 38
  • 10.1001/jamanetworkopen.2021.2265
Comparison of 1-Year Health Care Costs and Use Associated With Open vs Robotic-Assisted Radical Prostatectomy
  • Mar 22, 2021
  • JAMA Network Open
  • Kennedy E Okhawere + 5 more

With the current patterns of adoption and use of robotic surgery and improvement in the overall survival of patients with prostate cancer, it is important to evaluate the immediate and long-term cost implications of treatments for patients with prostate cancer. To compare health care costs and use 1 year after open radical prostatectomy (ORP) vs robotic-assisted radical prostatectomy (RARP). This retrospective cohort study used a US commercial claims database from January 1, 2013, to December 31, 2018. A total of 11 457 men aged 18 to 64 years who underwent inpatient radical prostatectomy for prostate cancer and were continuously enrolled with medical and prescription drug coverage from 180 days before to 365 days after inpatient prostatectomy were identified. An inverse probability of treatment weighting analysis was performed to examine the differences in costs and use of health care services by surgical modality. Data analysis was conducted from September 2019 to July 2020. Type of surgical procedure: ORP vs RARP. Three outcomes within 1 year after the inpatient prostatectomy were investigated: (1) total health care costs, including reimbursement paid by insurers and out of pocket by patients; (2) health care use, including inpatient readmission, emergency department, hospital outpatient, and office visits; and (3) estimated days missed from work due to health care use. Of the 11 457 patients who underwent inpatient prostatectomy, 1604 (14.0%) had ORP and 9853 (86.0%) had RARP and most patients (8467 [73.9%]) were aged 55 to 64 years. Compared with patients who underwent ORP, those who received RARP had a higher cost at the index hospitalization (mean difference, $2367; 95% CI, $1821-$2914; P < .001), but similar total cumulative costs were observed within 180 days (mean difference, $397; 95% CI, -$582 to $1375; P = .43) and 1 year after discharge (-$383; 95% CI, -$1802 to $1037; P = .60). One-year postdischarge health care use was significantly lower in the RARP compared with ORP group for mean numbers of emergency department visits (-0.09 visits; 95% CI, -0.11 to -0.07 visits; P < .001) and hospital outpatient visits (-1.5 visits; -1.63 to -1.36 visits; P < .001). The reduction in use of health care services among patients who underwent RARP translated into additional savings of $2929 (95% CI, $1600-$4257; P < .001) and approximately 1.69 fewer days (95% CI, 1.49-1.89 days; P < .001) missed from work for health care visits. Total cumulative cost in this study was similar between ORP and RARP 1 year post discharge; this finding suggests that lower postdischarge health care use after RARP may offset the higher costs during the index hospitalization.

  • Research Article
  • Cite Count Icon 27
  • 10.1016/j.urology.2004.01.042
Healthcare use and costs of primary and secondary care patients with prostatitis
  • Jun 1, 2004
  • Urology
  • Judith A Turner + 4 more

Healthcare use and costs of primary and secondary care patients with prostatitis

  • Research Article
  • Cite Count Icon 32
  • 10.7326/m21-1588
Supplemental Nutrition Assistance Program Participation and Health Care Use in Older Adults : A Cohort Study.
  • Oct 19, 2021
  • Annals of Internal Medicine
  • Seth A Berkowitz + 4 more

Older adults dually eligible for Medicare and Medicaid have particularly high food insecurity prevalence and health care use. To determine whether participation in the Supplemental Nutrition Assistance Program (SNAP), which reduces food insecurity, is associated with lower health care use and cost for older adults dually eligible for Medicare and Medicaid. An incident user retrospective cohort study design was used. The association between participation in SNAP and health care use and cost using outcome regression was assessed and supplemented by entropy balancing, matching, and instrumental variable analyses. North Carolina, September 2016 through July 2020. Older adults (aged ≥65 years) dually enrolled in Medicare and Medicaid but not initially enrolled in SNAP. Inpatient admissions (primary outcome), emergency department visits, long-term care admissions, and Medicaid expenditures. Of 115868 persons included, 5093 (4.4%) enrolled in SNAP. Mean follow-up was approximately 22 months. In outcome regression analyses, SNAP enrollment was associated with fewer inpatient hospitalizations (-24.6 [95% CI, -40.6 to -8.7]), emergency department visits (-192.7 [CI, -231.1 to -154.4]), and long-term care admissions (-65.2 [CI, -77.5 to -52.9]) per 1000 person-years as well as fewer dollars in Medicaid payments per person per year (-$2360 [CI, -$2649 to -$2071]). Results were similar in entropy balancing, matching, and instrumental variable analyses. Single state, no Medicare claims data available, and possible residual confounding. Participation in SNAP was associated with fewer inpatient admissions and lower health care costs for older adults dually eligible for Medicare and Medicaid. National Institutes of Health.

  • Research Article
  • Cite Count Icon 15
  • 10.18553/jmcp.2018.24.9.847
Novel Type 2 Diabetes Medication Access and Effect of Patient Cost Sharing.
  • Sep 1, 2018
  • Journal of Managed Care &amp; Specialty Pharmacy
  • Henry J Henk + 2 more

Although drug formulary restrictions may reduce use of prescription medication and pharmacy costs, the effect of patient cost sharing on medication adherence and health care utilization and cost is unclear. To evaluate the relationship between patient cost sharing for novel type 2 diabetes mellitus (T2DM) medications and medication adherence, persistence, and health care utilization and cost. This retrospective study used medical and pharmacy claims linked to pharmacy benefit plan design data. Patients with T2DM were identified via ICD-9-CM codes (medical claims), outpatient prescription fills (pharmacy claims), and pharmacy benefit design information. Patients with T2DM treated with novel T2DM medications (DPP4 or GLP-1) were enrolled in plans with fixed or coinsurance medication copayment structures and followed for 12-48 months. Endpoints included medication persistence and adherence and total all-cause health care cost. Multivariable regression analysis estimated the effect of benefit design parameters, adjusting for baseline patient characteristics. The integrated database included 36,475 patients with T2DM. The majority (83.1%) had fixed copayment plans, and 3-tier plans were common (93.1%). Higher third-tier copayment was associated with poorer medication adherence and persistence but not total health care cost during follow-up. A $10 higher third-tier copayment was associated with 11% greater risk of novel T2DM medication discontinuation and 3% lower adherence. A comparison of patients with fixed versus coinsurance plans found that fixed plans were associated with higher adjusted persistence and total all-cause health care costs. Higher medication copayment amounts were associated with lower patient medication adherence and persistence in T2DM but not total health care costs, as health plan costs decreased while patient out-of-pocket costs increased. We observed higher total all-cause health care costs among T2DM patients with a fixed copay (vs. coinsurance) pharmacy benefit. Additional research incorporating plan design information is needed to further examine this finding. This study was funded by Janssen Scientific Affairs, which was involved in study design, interpretation of data, editing manuscript content, and had final approval of the manuscript before submission. Lopez and Bookhart are employed by Janssen Scientific Affairs. At the time of this study, Henk was employed by Optum HEOR, which was contracted by Janssen to conduct this study. Portions of this study were presented at the 21st Annual International Meeting, ISPOR; May 21-25, 2016; in Washington, DC.

  • Front Matter
  • Cite Count Icon 21
  • 10.1016/j.jaci.2010.09.033
Health economics of allergen-specific immunotherapy in the United States
  • Jan 1, 2011
  • Journal of Allergy and Clinical Immunology
  • Richard F Lockey + 1 more

Health economics of allergen-specific immunotherapy in the United States

  • Research Article
  • Cite Count Icon 90
  • 10.1176/ajp.156.8.1250
Shifting to outpatient care? Mental health care use and cost under private insurance.
  • Aug 1, 1999
  • American Journal of Psychiatry
  • Douglas L Leslie + 1 more

Concern over rising health care costs has put pressure on providers to reduce costs, purportedly by reducing inpatient care and increasing outpatient care. Inpatient and outpatient claims were analyzed for adult users of mental health services (180,000/year on average) from a national study group of 3.9 million privately insured individuals per year from 1993 to 1995. Costs and treatment days per patient were compared across diagnostic groups and stratified by whether patients were hospitalized. Inpatient mental health costs fell $2,507 (30.4%) over the period, driven primarily by decreases in hospital days per patient per year (19.9%), with smaller changes in the proportion of enrollees who received inpatient care (increase of 0.8%) and a decrease in per diem costs (9.1%). Outpatient mental health costs also declined over the period, falling 13.6% for patients also using inpatient services and 14.6% for patients receiving only outpatient care. Patients whose primary diagnosis was mild to moderate depression saw the largest decreases in inpatient cost per patient (42.8%); those diagnosed with schizophrenia experienced the smallest decrease (23.5%). For patients using outpatient services only, those diagnosed with substance abuse experienced the largest decrease in costs (23.5%); those diagnosed with schizophrenia experienced the smallest decrease (8.6%). Substantial cost reductions for mental health services are primarily a result of reductions in inpatient and outpatient treatment days. Declines in inpatient service use were not accompanied by increases in outpatient service use, even for severely ill patients requiring hospitalization. Managed care has not caused a shift in the pattern of care but an overall reduction of care.

  • Research Article
  • Cite Count Icon 113
  • 10.1377/hlthaff.2012.0170
Strong Social Support Services, Such As Transportation And Help For Caregivers, Can Lead To Lower Health Care Use And Costs
  • Mar 1, 2013
  • Health Affairs
  • Gayle Shier + 4 more

A growing evidence base suggests services that address social factors with an impact on health, such as transportation and caregiver support, must be integrated into new models of care if the Institute for Healthcare Improvement's Triple Aim is to be realized. We examined early evidence from seven innovative care models currently in use, each with strong social support services components. The evidence suggests that coordinated efforts to identify and meet the social needs of patients can lead to lower health care use and costs, and better outcomes for patients. For example, Senior Care Options--a Massachusetts program that coordinates the direct delivery of social support services for patients with chronic conditions and adults with disabilities--reported that hospital days per 1,000 members were just 55 percent of those generated by comparable patients not receiving the program's extended services. More research is required to determine which social service components yield desired outcomes for specific patient populations. Gaining these deeper insights and disseminating them widely offer the promise of considerable benefit for patients and the health care system as a whole.

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