Study: Strickland drug plan might cost millions

A study released Monday from the National Alliance on Mental Illness Ohio, conducted by Columbus economist Howard Fleeter, found that a proposal from Gov. Strickland to require pre-authorization before Medicaid would pay for certain drugs used to treat mental illness could cost the state between $23 million and $38 million annually (Source: “Drug plan might cost millions,” Columbus Dispatch, July 8, 2008)

Stickland’s plan calls for preauthorization for specialized drugs used primarily to treat bi-polar disorder, schizophrenia and other serious mental-health conditions. The NAMI study estimates that the change could affect about 45,000 people.

Fleeter’s study determined that higher rates of hospitalization, lost wages, homelessness and incarceration of Medicaid patients who would be denied access to the medication they are currently taking would result in the increased cost to the state.

The plan was originally offered as a way to save the state $47 million a year, although more recent estimates from state Budget Director Pari Sabety indicate that the plan would not save the state any money. The Ohio Department of Job and Family Services, which oversees the Medicaid program, is working on a new savings estimate for Stickland's proposal.