GSK Shares Results of Internal Analysis, Urges Other Employers to Embrace
Value-Based Benefit Design
PHILADELPHIA, Aug. 28 /PRNewswire-FirstCall/ -- How does a leading
healthcare company foster a healthy workforce in its own organization?
GlaxoSmithKline (NYSE: GSK) is sharing the results of a major internal
analysis of its own healthcare spending for those with diabetes -- and
introducing a multilateral plan to further address the healthcare needs of
this group. The initiative began with a detailed analysis of GSK's diabetic
population -- in which the company found that it spent more on medications,
but less on medical care, than the national average. It also involved the
development of a robust patient education campaign, and participation in a
physician intervention program.
GSK compared its own healthcare data to the National Managed Care
Benchmark database (IHCIS Waltham, MA) -- a national database that includes
de-identified data for more than 40 million insured individuals.
"As a nation, we are seeing our healthcare costs soar and patients'
health decline due to chronic diseases such as diabetes. GSK faces these
same challenges and is prepared to meet them," said Michelle Killian, Vice
President, US Benefits at GSK. "We recognize that there are many disease
states out there, and we are committed to investing in what really works.
We need to provide access to the right treatments and medicines, as well as
prevention and maintenance programs, and think about each not as an
expense, but as a way to support the health and wellbeing of our employees
and their dependents."
Diabetes, GSK, and the Nation
According to the national benchmark data, approximately 5% of
non-elderly, privately-insured Americans are diabetic. The rate of diabetes
in GSK's population was also 5%, although its diabetic population was older
than the national average.
In 2005, GSK spent approximately $26.2 million in total costs treating
patients with diabetes, at an average cost of $8,390 per patient. While
GSK's diabetes population is older (mean age: 58) than the national
benchmark data (mean age: 51), it spends more on medications and less on
medical care, including hospital and emergency room visits, than the
national average. Per patient with diabetes, GSK spends $3,865 and $4,525,
respectively, on medications and medical care; national average costs per
patient are $2,900 and $7,966. For GSK, each additional $1 spent for
medications yielded a 3:1 return in lower medical costs.
Following a physician's orders for medication, diet, and exercise are
essential to managing diabetes. In addition, the American Diabetes
Association (ADA) recommends having a hemoglobin A1c (A1c) test-a
laboratory test showing the patient's average blood sugar control over the
previous two to three months-a minimum of two times per year if blood sugar
is under control, or quarterly if medications are being changed or
adjusted. The A1c test is the best way to assess if a patient's blood sugar
is well controlled or not.
The good news for GSK is that its diabetic patients are more likely to
follow the ADA recommendations for A1c testing than the national average.
However, those numbers are still low; 35% of GSK patients with diabetes
receive two or more A1c tests per year versus the national rate of 30%.
Additionally, GSK discovered that an alarming 47% did not have even one
test in the prior year.
GSK would like to be 100% compliant with the ADA guidelines of two A1c
tests per year for its diabetic population. The company has set compliance
goals of 50% or higher within a 12-month period, and 75% at the end of two
years. To accomplish this challenging goal, GSK is implementing several
initiatives-both to educate employees who have diabetes or are at risk of
developing it, and to provide better access to medical intervention.
Know Your Numbers
For patients who are at risk of developing diabetes, GSK will encourage
screening tests which can be completed in the office. For those patients
already diagnosed with diabetes, GSK is launching a patient education
program called Know Your Numbers. Its "ABC" campaign -- developed to
encourage patients to regularly test their A1c levels, Blood pressure, and
Cholesterol -- employs GSK's National Committee on Quality Assurance
(NCQA)-certified "Diabetes SET for Success(C)," a workplace model for
diabetes management.
Bridges to Excellence(TM)
GSK is a founding member of the Research Triangle Area Health Care
Collaborative-a group of forward-thinking local employers and health plans-
created to find ways of providing high-quality, cost-efficient care for
employees and beneficiaries. The Collaborative is implementing Bridges to
Excellence (BTE) -- a nationally-recognized program that compensates
physicians for meeting rigorous, evidence-based quality standards for key
aspects of care. Physicians may achieve recognition in three areas:
-- Diabetes care
-- Heart-stroke care
-- Physician office practices (e.g. electronic records)
All areas employ standards established by the NCQA.
Through the Collaborative, participating employers will compensate
physicians who are NCQA-certified and meet certain additional criteria.
Physician compensation is based on the number of employees and dependents
covered by participating employers who are treated by each physician or
group.
"Access to care is important, but access to quality care is paramount,"
Killian said of the BTE program.
Value-Based Benefit Design
GSK is a vocal advocate for healthy living, disease screening, and
preventive care; proper medical intervention to better manage chronic
diseases; and research to find innovative treatments that make life-ending
diseases manageable. The company also works with other employers to show
how health benefits, such as insurance coverage and patient out-of-pocket
costs, influence consumer healthcare choices and outcomes.
Over the past few years, GSK has worked with hundreds of employers to
reevaluate the way they design their health benefits, promoting a somewhat
counterintuitive approach that reduces or eliminates prescription
co-payments. GSK worked with Pitney Bowes, Inc. to publish a series of
books based on Pitney Bowes' experience with value-based benefit design.
After Pitney Bowes redesigned their health benefits, they saw a healthier,
more productive workforce and dramatically lower healthcare costs for
employees with asthma and diabetes.
"GSK has always offered its employees, dependents, and retirees a low
prescription co-payment, free preventive services, and access to numerous
support programs," said Killian. "Now, with this strategic effort to
address the enormous challenge of diabetes in our population, GSK is
looking at fresh approaches that support a healthier workforce."
GlaxoSmithKline -- one of the world's leading research-based
pharmaceutical and healthcare companies -- is committed to improving the
quality of human life by enabling people to do more, feel better and live
longer. For company information, visit GlaxoSmithKline on the World Wide
Web at http://www.gsk.com.
SOURCE GlaxoSmithKline
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CONTACT:
Media, Michael McTigue for GlaxoSmithKline,
+1-215-751-770
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