Pharmacy Management

Leveraging PDMPs in the Opioid Battle

Prescription monitoring programs are a prime tool in the fight against opioid abuse. Unfortunately there are barriers to access.
By: | February 24, 2017 • 4 min read

Many of those in the industry may have read the recent musings of Judge Langham, the Deputy Chief Judge of Compensation Claims for The Florida Division of Administrative Hearings regarding the drug abuse crisis we have in our industry and the deaths resulting from that crisis.

He notes, “The bottom line is that drugs are directly killing people, lots of people. The 2015 total of 55,403 deaths from drugs comes out to an overdose death about every 9.5 minutes all day long.” Shocking!

We, in our industry, have certainly put a lot of focus on the opioid epidemic in workers compensation but as Judge Langham points out, it’s not just opioids we need to worry about. As he notes, the use of pharmaceuticals is staggering — there are deadly combinations of multiple drugs as well as drugs and alcohol that are killing our injured workers and sometimes their family members as well.

The pharmacy benefit management programs we all utilize are doing a good job of controlling workers’ comp pharmacy costs and identifying inappropriate or unapproved medications and high MED (Morphine Equivalent Dose) levels insofar as they know.

Our stove-piped insurance programs keep these PBMs in the dark about all the drugs a particular injured worker might be taking, i.e. the right hand and the left hand not knowing what the other hand is doing.

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What can we do about this; you ask? That is where the PDMPs come in.

PDMPs, or prescription drug monitoring programs, collect, monitor, and analyze electronically transmitted prescribing and dispensing data submitted by pharmacies and dispensing practitioners, no matter the insurance coverage.

The data is used to support states’ efforts to educate, research, enforce and prevent abuse and diversion. PDMPs are managed by the individual states. Forty-nine states, the District of Columbia and one U.S. territory (Guam) currently have a PDMP that is operational (meaning collecting data from dispensers and reporting information from the database to authorized users).

The PDMP provides nationwide information about prescriptions that are being filled: their strengths, dosages and quantities; the prescribing physicians; the pharmacies that are filling them; and when they are being filled.

Bottom line, your PBM does not have the whole picture concerning an injured worker’s pharmaceuticals.

Per state law, PDMPs monitor controlled substances as defined by Federal and State Controlled Substances Laws. Some PDMPs also monitor additional drugs of concern. You can find out which drugs are monitored by a specific state by going to this website: www.pdmpassist.org.

Recent studies have shown that when states require mandatory reporting, it cuts down on abuse and leads to improved outcomes.

For example, in 2015, there were 439 total drug deaths in New Hampshire, of which 397 were caused by opiates/opioids. If nothing had changed, the state was on a path to hit 500 opioid related deaths in 2016. On June 7, 2016, Governor Hassan signed House Bill 1423, which mandates the use of the prescription drug monitoring program when initially prescribing an opioid and at least twice a year thereafter.

Their 2016 annual report showed that the PDMP is beginning to have positive effects on their opioid epidemic. Prescriptions for schedule II drugs, such as opioids, went down by almost 13% and the number of patients that were flagged for potential doctor shopping (using 5 or more doctors or pharmacies for prescriptions) decreased from 9/month to 3/month.

So you are probably thinking that this is just what we need, a way to look across insurance programs to identify inappropriate drug dispensing/usage and individual injured workers who may be at serious risk.

State law determines access to PDMP information. Most states only allow physicians and dispensing pharmacists to obtain PDMP reports on patients under their care. This allows the treating physicians and dispensing pharmacists an opportunity to intervene with the physician and the injured worker prior to dispensing a controlled substance if the PDMP suggests this might not be safe or in the injured worker’s best interest.

States may also provide PDMP information to other authorized groups such as law enforcement or licensing or regulatory boards but not to pharmacy benefit managers who are third party participants and not considered part of the injured workers treatment team.

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Bottom line, your PBM does not have the whole picture concerning an injured worker’s pharmaceuticals.

What do you need to do?

Take a look around, as there are new players in this PBM market who are taking this problem we have with controlled substances seriously and adding experienced dispensing pharmacists with access to this tool to their program on cases that appear to be at risk.

But keep this in mind as well. Knowing about all the injured worker’s prescribed controlled substances before dispensing is one thing. Providing clinical interventions once you know and before the controlled substance is dispensed is the real key to better outcomes.

Maddy Bowling is a principal in Maddy Bowling Consulting, Inc., a WC consulting firm. Bowling has 35 years of broad-based executive management experience within operating, corporate and consulting environments. She can be reached at [email protected]

2017 RIMS

Resilience in Face of Cyber

New cyber model platforms will help insurers better manage aggregation risk within their books of business.
By: | April 26, 2017 • 3 min read

As insurers become increasingly concerned about the aggregation of cyber risk exposures in their portfolios, new tools are being developed to help them better assess and manage those exposures.

One of those tools, a comprehensive cyber risk modeling application for the insurance and reinsurance markets, was announced on April 24 by AIR Worldwide.

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Last year at RIMS, AIR announced the release of the industry’s first open source deterministic cyber risk scenario, subsequently releasing a series of scenarios throughout the year, and offering the service to insurers on a consulting basis.

Its latest release, ARC– Analytics of Risk from Cyber — continues that work by offering the modeling platform for license to insurance clients for internal use rather than on a consulting basis. ARC is separate from AIR’s Touchstone platform, allowing for more flexibility in the rapidly changing cyber environment.

ARC allows insurers to get a better picture of their exposures across an entire book of business, with the help of a comprehensive industry exposure database that combines data from multiple public and commercial sources.

Scott Stransky, assistant vice president and principal scientist, AIR Worldwide

The recent attacks on Dyn and Amazon Web Services (AWS) provide perfect examples of how the ARC platform can be used to enhance the industry’s resilience, said Scott Stransky, assistant vice president and principal scientist for AIR Worldwide.

Stransky noted that insurers don’t necessarily have visibility into which of their insureds use Dyn, Amazon Web Services, Rackspace, or other common internet services providers.

In the Dyn and AWS events, there was little insured loss because the downtime fell largely just under policy waiting periods.

But,” said Stransky, “it got our clients thinking, well it happened for a few hours – could it happen for longer? And what does that do to us if it does? … This is really where our model can be very helpful.”

The purpose of having this model is to make the world more resilient … that’s really the goal.” Scott Stransky, assistant vice president and principal scientist, AIR Worldwide

AIR has run the Dyn incident through its model, with the parameters of a single day of downtime impacting the Fortune 1000. Then it did the same with the AWS event.

When we run Fortune 1000 for Dyn for one day, we get a half a billion dollars of loss,” said Stransky. “Taking it one step further – we’ve run the same exercise for AWS for one day, through the Fortune 1000 only, and the losses are about $3 billion.”

So once you expand it out to millions of businesses, the losses would be much higher,” he added.

The ARC platform allows insurers to assess cyber exposures including “silent cyber,” across the spectrum of business, be it D&O, E&O, general liability or property. There are 18 scenarios that can be modeled, with the capability to adjust variables broadly for a better handle on events of varying severity and scope.

Looking ahead, AIR is taking a closer look at what Stransky calls “silent silent cyber,” the complex indirect and difficult to assess or insure potential impacts of any given cyber event.

Stransky cites the 2014 hack of the National Weather Service website as an example. For several days after the hack, no satellite weather imagery was available to be fed into weather models.

Imagine there was a hurricane happening during the time there was no weather service imagery,” he said. “[So] the models wouldn’t have been as accurate; people wouldn’t have had as much advance warning; they wouldn’t have evacuated as quickly or boarded up their homes.”

It’s possible that the losses would be significantly higher in such a scenario, but there would be no way to quantify how much of it could be attributed to the cyber attack and how much was strictly the result of the hurricane itself.

It’s very, very indirect,” said Stransky, citing the recent hack of the Dallas tornado sirens as another example. Not only did the situation jam up the 911 system, potentially exacerbating any number of crisis events, but such a false alarm could lead to increased losses in the future.

The next time if there’s a real tornado, people make think, ‘Oh, its just some hack,’ ” he said. “So if there’s a real tornado, who knows what’s going to happen.”

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Modeling for “silent silent cyber” remains elusive. But platforms like ARC are a step in the right direction for ensuring the continued health and strength of the insurance industry in the face of the ever-changing specter of cyber exposure.

Because we have this model, insurers are now able to manage the risks better, to be more resilient against cyber attacks, to really understand their portfolios,” said Stransky. “So when it does happen, they’ll be able to respond, they’ll be able to pay out the claims properly, they’ll be prepared.

The purpose of having this model is to make the world more resilient … that’s really the goal.”

Additional stories from RIMS 2017:

Blockchain Pros and Cons

If barriers to implementation are brought down, blockchain offers potential for financial institutions.

Embrace the Internet of Things

Risk managers can use IoT for data analytics and other risk mitigation needs, but connected devices also offer a multitude of exposures.

Feeling Unprepared to Deal With Risks

Damage to brand and reputation ranked as the top risk concern of risk managers throughout the world.

Reviewing Medical Marijuana Claims

Liberty Mutual appears to be the first carrier to create a workflow process for evaluating medical marijuana expense reimbursement requests.

Cyber Threat Will Get More Difficult

Companies should focus on response, resiliency and recovery when it comes to cyber risks.

RIMS Conference Held in Birthplace of Insurance in US

Carriers continue their vital role of helping insureds mitigate risks and promote safety.

Michelle Kerr is associate editor of Risk & Insurance. She can be reached at [email protected]