Table 4. Final recommendation.
Recommendation 1: Reimbursement at 100% of Medi-Cal and for drugs are not covered by a Medi-Cal, calculate the maximum fee as 60% of AWP. For drugs that are not covered by either Medi-Cal or AWP, calculate the maximum fee as 97% of WAC | ||||
100% of Medi-Cal | 97.30% | $109,657,753 | $111,627,060 | $1,969,307 |
60% of AWP | 96.70% | $5,325,626 | $10,611,632 | $5,286,006 |
97% of WAC | 0% | $0 | $0 | $0 |
Drugs that are not covered by the previous pricing benchmarks | 0.1% | $151,983 | $0 | $151,983 |
Total | 99.9% | $115,135,363 | $122,238,692 | $7,255,313 |
Recommendation 2: Reimbursement at 100% of and for drugs are not covered by NADAC, calculate the maximum fee as 60% of AWP. For drugs that are not covered by either Medi-Cal or AWP, calculate the maximum fee as 97% of WAC | ||||
100% of NADAC | 94.20% | $101,092,760 | $76,869,650 | -$24,223,110 |
60% of AWP | 88.30% | $12,259,281 | $17,625,668 | $5,366,387 |
97% of WAC | 12.30% | $113,513 | $117,532 | $4,019 |
Drugs that are not covered by the previous pricing benchmarks | 0.6% | $1,669,807 | $0 | $1,669,807 |
Total | 99.4% | $115,135,363 | $94,612,850 | -$17,182,897 |
Recommendation 3: lower of Medi-Cal or NADAC. Then for those drugs not covered by either Medi-Cal or NADAC, calculate the maximum fee as 60% of AWP | ||||
lower of Medi-Cal or NADAC 93.6% | $100,196,486 | $75,739,896 | -$24,456,486 | |
60% of AWP 89.5% | $13,155,473 | $18,243,674 | $5,088,201 | |
Drugs that are not covered by the previous pricing benchmarks | 1% | $1,783,408 | $0 | $1,783,408 |
Total | 99% | $115,135,363 | $93,983,570 | -$17,584,877 |
Note: CAWCS, California Workers’ Compensation System; AWP, Average Wholesale Price; WAC, Wholesale Acquisition Cost; NADAC, National Average Drug Acquisition Cost.
This table examines the implications of each recommendation and calculates the cost-saving compared to the current CAWCS pricing scheme over three years.