Human and Economic Impact of Medication Non-Compliance
Medication Non-Compliance:
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Costs $177 Billion in US annually1
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Accounts for 78% of healthcare spending2
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20-25% of employer healthcare costs are the result of non-compliance3
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50% of people with a chronic illness are non-compliant4
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Cuts across age, gender, race, education and income5
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Effective adherence programs may have a much greater impact on patient health than improved medical treatments4
Medication Adherence:
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Each additional dollar spent on diabetes medication is estimated to save $7 in medical costs7
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The combined drug and medical costs for the most compliant diabetes patients average almost
50 % below the cost for the least-compliant group6
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For diabetes, hypercholesterolemia and hypertension, hospitalization rates were significantly lower for patients with high medication adherence.7
Chronic Conditions:
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133M people have at least one chronic disease8
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Represent 75% of total health care expenditures2
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More than 45% of non-institutionalized Americans has one or more chronic conditions9
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Account for: 9
- 69% of hospital admissions
- 55% of emergency room visits
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75% of people with chronic conditions are under age 6510
Medication Therapy Management
In 2003, Congress coined the term medication therapy management (MTM) in the Medicare Modernization Act of 2003. MTM describes services by pharmacists that help consumers get the best results from their medications through enhanced understanding of medications; increased consumer adherence to medication directions; and prevention of drug complications, conflicts and interactions.
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1Ernst FR and Grizzle AJ, “Drug-Related Morbidity and Mortality: Updating the Cost-of-Illness Model,” Journal of the American Pharmaceutical Assn., March/April 2001
2Thomas Bodenheimer, MD, and Alicia Fernandez, MD, “High and Rising Health Care Costs. Part 4:Can Costs Be Controlled While Preserving Quality?” Annals of Internal Medicine, 143:1 (2005), pages 26-31. This cost estimate is for direct healthcare costs only; it does not include the indirect costs of lost productivity for the person with a chronic condition or that person's caregivers.
310th Annual Survey of large employers: Watson Wyatt Worldwide and National Business Group on Health, 2005.
4 World Health Organization (2003), “Adherence to Long-Term Therapies: Evidence for Action,” page 35
5Osterberg, L. and Blaschke, T. “Adherence to Medication,” N. England J Med, 2005; 353:487-97
6Tom Starner, Human Resource Executive, May 2, 2006, "The Price of Non-Compliance," http://www.hreonline.com/HRE/story.jsp?storyId=5059249
7Michael C. Sokol, MD, MS, Kimberly A. McGuigan, PhD, Robert R. Verbrugge, PhD
and Robert S. Epstein, MD, MS, "Prospective cohort observation," Med Care 2005;43: 521–530
8Wu S, Green A., “Projection of Chronic Illness and Cost Inflation,” RAND Corporation, October 2000
9Hoffman, D. Rice, and H-Y. Sung, "Persons with Chronic Conditions: Their Prevalence and Costs," Journal of the American Medical Association 276, no. 18 (1996): 1473–1479).
10Michael E. Porter & Elizabeth Olmsted Teisberg, Redefining Health Care: Creating Value-Based Competition on Results, Harvard Business School Press; 2006
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