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Sim Plan+.... Takes the Risk 

Out of Drug Benefit Design

Question: Which is better for experimental drug testing, ”Man or Mouse”?

Our answer: neither. With today’s advanced technology, we can often use computer simulation to achieve risk-free results.

Admittedly, we’re just using the question to help get your attention. We want to introduce you to the concept of drug benefit simulation with SimPlan+ and the considerable contribution it can make to the management of your drug benefit programs.

 
The Answers

You’ve Been Waiting For...

     SimPlan+ is a new and invaluable tool for Drug Benefit Administrators. This unique software package is designed to help achieve significant savings by simulating the results of changes to benefit programs before actually effecting those changes—something akin to a wind tunnel test for proposed aircraft designs.

     SimPlan+ provides a drug benefit "wind tunnel" and enables the simulation of "what if" options to be applied to the claims of a prior period.

     Consider the extraordinary resource you have in the collected history of your previously paid claims. When you select out those claims from a particular plan, you have the actual utilization pattern of a slightly changed membership. The likelihood of these participants carrying their maladies and the associated therapies into the future is quite high.

     Based on the age mix of the plan, maintenance drugs may represent anywhere from 30% to 60% of utilization. Add to this virtually fixed pattern of utilization, the fact that the prescribers will probably be the same—carrying with them tendencies to repeat their prescribing pattern of both acute and maintenance drugs. What better database could one have than such a synchronized data history for projection purposes?

     We use this accumulated history of utilization for a specific plan as input to SimPlan+. You study the results and make any number of variations to the rules of the benefit program. Change one aspect or many at the same time. Since this is a no-risk simulation, you can continue to run as many possibilities as you want until you’re satisfied with the outcome.

 
You Can Alter and Modify:
Family differentials
Drug inclusions and exclusions 
Mandatory generics when available
Co-pay 
Mandatory maintenance drug conditions
Dispensing fee
Maximum and minimum allowances 
Ingredient cost
Maximum quantities/days supplied 
Capitation
Deductibles
Pharmacy reimbursement calculations 
and many more
 
     The output of the SimPlan+ execution and application will be a suite of computer reports that compares results from your current plan with projected plan results. All the “What if” questions are answered with projections extrapolated from the recent prior history of the subjects. Complex questions are answered—How much in dollars have the total ingredient cost, dispensing fees and/or co-pay been reduced or increased? Is there any measurable increase in rejects with the imposition of these changes?

     Clearly, this tool can remove the blindfold of experimentation and prevent or minimize costly mistakes as you make changes or modifications.

How The Administrator Uses SimPlan+

     The first step is to prepare a definition of the old and/or new plan that the computer can “read” for the adjudication simulation. For this purpose, DP/Rx provides an easy to use software package: the “Plan Model Builder” (PMB)

     Using the PMB with an ordinary Desktop Computer, you will create two plan definition files: one details specifics of the plan used with your previously- paid claims history data; the other details the specifics of your test or comparison plan.

     Our PMB package is extremely user-friendly. It guides you through a “fillin-the-blanks” set of screen forms that allow simple one-character or numerical response entries. When completed, the PMB automatically creates a diskette of these plan definitions in a format compatible with SimPlan+ computer processing input.

 
The adjudication categories and the variety of options offered for each in the PMB are:
 
Formulary by drug categories
Drug inclusions and exclusions
Drug pricing or ingredient cost indexing
Co-pay strategies and calculations
Dispensing fee variations
Plan dollar limitations
Family deductibles and/or capitation
Generic substitution strategies
DAW restrictions and options Plus many more controls—
 
     The second step is to forward the PMB diskette to the DP/Rx computer center (or your company’s SimPlan+ processor) along with a 9-track (or DAT) tape containing the previously-paid claims history file. Both become input for SimPlan+ processing which produces a group of selected reports.

     The third and final step is your review and evaluation of the SimPlan+ output reports on their return from the processing center. Comparison of the two plan results is made with an eye toward determining whether the targeted objectives were fully achieved. Did the changes cause the anticipated effect? If the results are viewed as effective and appropriate to the intended objectives, you can then order the implementation of the actual plan changes.

     If further “tweaking” of the changes is indicated, you return to the first step and call the experimental plan definition back for modifications. It is then altered to accommodate the shortcomings of the first attempt and the process is run again.

 
How This Product Works
 
     SimPlan+ requires the definition of your plan in a form that it can interpret. The Plan Definition Software (PMB) package takes one character for each element of plan definition and creates a customized “string” of characters and numbers (i.e., “Y” for yes or included, "A” for authorization required, “X” for excluded, etc.).

     The characters in the string are used for calculation or adjudication logic by the interpretive component of the SimPlan+ program when executed by the DP/Rx service center. This is the same component that is used for on-line adjudication, hence the calculations of the simulated version are identical to the real—time and on-line processor.

     The entire process of creating the definition for one plan from scratch (moving through 12 pages of definition options and selections) usually takes less than one-half hour. And once the existing plan is created, you simply copy that version for the new plan skeleton. Then you need to spend just a few minutes customizing the adjudication parameters you want for the new comparison plan.

     You will probably want to maintain a library of plan definitions and use them for testing or for application in the adjudication process. These too may be copied for quick modification to try other options for change.

Why Your Management Will Approve
SUMMARY
 
     Drug benefits are the fastest rising cost in managed care programs. The drug component has been increasing 10% per year—approaching 10% of the total plan cost. Since drug therapies are found to be the most cost effective, expenditures are projected to increase further. This brings greater scrutiny of the drug therapy component.

      More and closer refinement for cost containment of the drug benefit plan will become a high priority objective. It follows that plan administrators will want to become more innovative with the design of their plans. Since the process is quite complex, it is only natural that advanced techniques be made available to evaluate the modifications of plans before they are implemented to avoid confusion or, possibly, chaos.

     SimPlan+ provides a quick and easy way to test by simulation any plan with paid-claims data history. No other method, except for actual implementation will be as accurate in foretelling the results of change.

     There is no great initial investment for the user. SimPlan+ will be offered as a service and billed for on a measured use basis. The charge for this service is insignificant compared to its potential for savings and cost containment.

     SimPlan+ is also available on a purchase/maintenance basis for those users who wish to integrate simulation into their regular localized procedures.

     Finally, this question.. .Wouldn’t you like to see the future of your drug benefit program and its potential savings suddenly snap into sharp focus? —We’re looking forward to your answer.

SIMPLAN+
 
We Let You Look Before You Leap—Ahead!
SimPlan+ is available as a service or as a software product that runs on personal computers.
 

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