Economic Implications of Self-treatment of Heartburn/Nonulcur Dyspepsia with Nonprescription Famotidine in a Managed Care Setting

OBJECTIVE: To determine the potential economic impact on a managed care organization of switching appropriate patients from current therapy to a prescription medication recently approved for nonprescription treatment of heartburn/nonulcer dyspepsia. DESIGN: Retrospective claims review to determine the cost of treatment of these conditions and development of an economic model to illustrate potential cost savings resulting from physicians, altering of their treatment patterns to include the nonprescription product. SETTING: Independent practice association-model health maintenance organization in the midwestern United States. RESULTS: Over a five-year period, the cost to a 260,000-member managed care organization of treating nonsevere heartburn/nonulcer dyspepsia was estimated to be more than $24 million. With the planned introduction and use of the nonprescription medication by physicians and patients, the managed care organization is expected to save up to $6 million over a similar time period, or 25% of the total cost of treatment. These savings result, in part, from the avoidance of unnecessary physician visits, prescriptions, and laboratory tests. CONCLUSION: Targeted and appropriate use of self-medication with a safe and effective nonprescription product has the potential to create substantial savings for managed care organizations.