The state of Connecticut is trying a novel approach to reducing its drug spending for the Opioid Dependence drug class of Buprenorphine. Connecticut would like to force all insurance companies, including Medicaid, to purchase Buprenorphine through one manufacturer unless there is a medical reason that it is not possible. Indivior, the maker of a Buprenorphine brand name drug called Suboxone, has stated that if they become the sole manufacturer and supplier to Connecticut, they will sell their product for 10% less per unit than the average generic cost. They have asked you to figure out how much money it would save the state’s healthcare system. Assumptions:
•This analysis is based on the 2021 of Husky Health data supplied in Unit 1.•Roughly 11,881 (2.3%) of Husky Health’s population of 517,000 people is on Buprenorphine, each getting one prescription a month. This is representative of all of Connecticut.•The current mix of brand and generic drugs remains the same for the population at large.•The average price per unit of drugs paid by Husky Health is the same as other insurance companies.•The number of people who will use Buprenorphine may change next year (you must make an assumption).•The price of the generic drug is stable.•No new drugs will hit the market.•10% of the population cannot use the brand name drug and will stay on the generic.
Instructions:
•Attempt to calculate the savings for the state for this initiative. You will need tocalculate the savings for the Medicaid FFSU population (data supplied), factoringin the population who will remain on generic, and extrapolate that to the statepopulation. Feel free to bring in any other factors you feel fit.
•There are is no signal answer to this problem, and each person will come up witha different conclusion. It is expected you may have to make assumptions, youjust need to explain your reasoning.
Requirements:
•Excel workbook showing your formulas and work.
• Complete cost per unit
• Complete pivot table on assignment the the
