The Impact of Global Budgets on Pharmaceutical Spending and Utilization: Early Experience From the Alternative Quality Contract

In 2009, Blue Cross Blue Shield of Massachusetts implemented a global budget-based payment system, the Alternative Quality Contract (AQC), in which provider groups assumed accountability for spending. We investigate the impact of global budgets on the utilization of prescription drugs and related ex...

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Bibliographic Details
Published in:Inquiry (Chicago) 2014, Vol.51 (1), p.1-7
Main Authors: Afendulis, Christopher C., Fendrick, A. Mark, Song, Zirui, Landon, Bruce E., Safran, Dana Gelb, Mechanic, Robert E., Chernew, Michael E.
Format: Article
Language:English
Subjects:
Analysis
Antihypertensives
Blue Cross Blue Shield Insurance Plans - economics
Budgets
Cost Control
Drug design
Drug prescriptions
Federal budget
Female
Financial budgets
Health care economics
Health care expenditures
Health Expenditures - statistics & numerical data
Health insurance
Humans
Impact analysis
Male
Massachusetts
Medicaid
Medical care, Cost of
Medicare
Models, Economic
Payment systems
Pharmaceutical preparations
Pharmaceutical Preparations - economics
Pharmaceuticals
Physicians
Prescription drugs
Quality Indicators, Health Care - economics
Quality of Health Care - economics
Quality of Health Care - statistics & numerical data
Reimbursement, Incentive
Statistical significance
Studies
Citations: Items that this one cites
Online Access:Request full text
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Description
Summary:In 2009, Blue Cross Blue Shield of Massachusetts implemented a global budget-based payment system, the Alternative Quality Contract (AQC), in which provider groups assumed accountability for spending. We investigate the impact of global budgets on the utilization of prescription drugs and related expenditures. Our analyses indicate no statistically significant evidence that the AQC reduced the use of drugs. Although the impact may change over time, early evidence suggests that it is premature to conclude that global budget systems may reduce access to medications.
ISSN:0046-9580
1945-7243
DOI:10.1177/0046958014558716