Estimate Broader Economic Impact of Lecanemab for Medicare Beneficiaries Alzheimer's Disease Patients: Budget Impact and Input-Output Models

Author(s)

Sanogo V1, Al-Mutairi R2, Diaby K3
1Northcentral University, Haines City, FL, USA, 2MCPHS University, Boston, MA, USA, 3Otsuka Pharmaceutical Development & Commercialization, Inc., Princeton, NJ, USA

OBJECTIVES: By 2023, an estimated 6.7 million Americans aged 65 and older, mainly 75+ years will be affected by Alzheimer's disease (AD). The global AD prevalence is expected to reach 12.7 million by 2050. Acetylcholinesterase inhibitors (AChEIs) like donepezil, galantamine, and rivastigmine are commonly used to treat AD. In 2023, the projected cost of AD and related dementias in the U.S. is $345 billion, with Medicare and Medicaid accounting for $222 billion, prompting a study on the impact of Lecanemab on healthcare costs and broader economic effects associated with AD treatment.

METHODS: A two-step approach evaluated financial and broader impacts of Lecanemab for AD treatment. The first step used a three-year budget impact model, comparing scenarios with and without Lecanemab, factoring in market share, costs, therapy duration, and patient compliance projections. The budget impact was determined by calculating the difference in annual costs and per member per month (PMPM) expenses. In the second step, an input-output model, utilizing uses and products tables, assessed sectorial and broader economic effects. Sensitivity and simulation analyses explored how changes could influence model outcomes.

RESULTS: Introducing Lecanemab for eligible AD patients in the US is estimated to result in a three-year budget impact of $300,788,773.6 for a health plan with one million members. The incremental cost per member per month (PMPM) would be $8.4, with a cost per treated member per month (PTMPM) of $92.5. The input-output model projects a total impact of $934.88 million, including a 0.2% increase in employment and a 0.04% rise in exports. Sensitivity analysis suggests that improved compliance and acquisition cost efficiency could contribute to a sustained GDP increase.

CONCLUSIONS: Lecanemab, an AD treatment, minimally affects health plan budgets in the US. However, it holds substantial potential to impact the broader economy positively by improving employment, exports, and patient adherence through six annual doses.

Conference/Value in Health Info

2024-05, ISPOR 2024, Atlanta, GA, USA

Value in Health, Volume 27, Issue 6, S1 (June 2024)

Code

EE102

Topic

Economic Evaluation, Health Policy & Regulatory, Methodological & Statistical Research

Topic Subcategory

Budget Impact Analysis, Insurance Systems & National Health Care, Novel & Social Elements of Value

Disease

Biologics & Biosimilars, Geriatrics, Mental Health (including addition), Neurological Disorders

Explore Related HEOR by Topic


Your browser is out-of-date

ISPOR recommends that you update your browser for more security, speed and the best experience on ispor.org. Update my browser now

×