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Incremental Cost Savings 6 Months Following Initiation of Insulin Glargine in a Medicaid Fee-For-Service Sample

This study assessed the role of insulin glargine use on the short-term costs of diabetes care from a state Medicaid fee-for-service reimbursement perspective. A retrospective claims analysis was performed for 20% of Medicaid recipients in California (Medi-Cal) between November 2000 and September 2002. Each patient with continuous enrollment at least 6 months before and after the insulin glargine index date was matched with 2 reference patients by age, gender, diabetes diagnosis, and enrollment dates. Costs were calculated for emergency department, inpatient, outpatient, and pharmacy claims paid, and changes from baseline were determined. Incremental cost savings were estimated from baseline cost in the insulin glargine group multiplied by the difference in percentage of changes from baseline. Of the 1018 insulin glargine users, 267 satisfied inclusion criteria and were matched to 534 reference patients. Baseline treatment costs were 2.7-fold higher in the insulin glargine group. Absolute cost reductions in the insulin glargine and reference groups were $185 and $72 per patient, respectively. Incremental cost savings were $69 per insulin glargine user, including more than $200 in incremental savings for inpatient claims. Hypoglycemia decreased from 9.5% to 3.8% of inpatient claims in the insulin glargine group but remained 1.1% throughout in the reference group. Insulin glargine use was associated with reduced inpatient hypoglycemia-related claims paid and short-term reductions in the inpatient and total costs of diabetes-related care. Additional studies are warranted to assess the influence of insulin glargine on diabetes-related costs.