The Workers’ Compensation Research Institute (WCRI) released a “FlashReport” that looks at how a closed formulary similar to the Texas closed formulary would impact Louisiana in terms of the prevalence and cost of drugs prescribed to the state’s employees. They estimated that such a formulary would reduce the state’s prescription drug costs by between 4 and 28 percent, a savings of $322,000 to $2.3 million, depending on prescriber behavior, over the 18 month study period.

The study used data from 45,000 prescriptions filled in Louisiana between January 1^st, 2016 and June 30^th for state employees and paid for under the state’s workers compensation program. It did not measure the impact of a formulary on things like outcomes and overall medical costs, or go into potential cost savings for workers’ comp claims.

The study also found that one in five prescriptions were written for non-formulary drugs and accounted for a higher proportion of total prescription costs. Non-formulary drugs like OxyContin are more expensive than those approved under the formulary, and the study found that long-acting opioids like OxyContin and others accounted for one in five non-formulary prescriptions that were filled by Louisiana state employees in this time period. Brand name drugs accounted for a third of non-formulary prescriptions and 57-60 percent of non-formulary prescription payments.

The Texas formulary includes all FDA approved drugs with the exception of “N” drugs, compound drugs containing “N” drugs, and experimental drugs. An “N” drug is one that is not recommended as a preferred or first-line treatment per ODG standards. Drugs included in the formulary do not need preauthorization, but if a physician wants to prescribe such a drug they can get preauthorization from the payer.

Read more from WorkCompWire and visit WCRI to purchase the full study.