Projection of budgetary savings to US state Medicaid programs from reduced nursing home use due to an Alzheimer's disease treatment.

ABSTRACT:

Introduction

The approval of a disease-modifying Alzheimer's disease (AD) treatment could provide relief to US state budgets that were hit hard by the COVID-19 pandemic, as mostly Medicare would cover treatment cost, whereas Medicaid would see savings from reduced nursing home use.

Methods

We project savings from 2021 to 2040 with a simulation model from the perspective of state Medicaid programs.

Results

Assuming a 40% and 22% relative reduction of disease progression rates with treatment, Medicaid would avoid payments of $186.2 and $93.5 billion for around 1.11 and 0.57 million nursing home patient-years, respectively. The savings correspond to a 5.06% and 2.49%, respectively, relative reduction of Medicaid spending on nursing home care. Higher per capita savings we

SUBMITTER: Lam J 

PROVIDER: S-EPMC7968122 | biostudies-literature | 2021

REPOSITORIES: biostudies-literature