A complication is defined as a patient condition caused by the Type 2 diabetes of the patient. 2 diabetes. Complications of Type 2 diabetes include, but …


Texas Business Group on Health

TBGH

2008 TEXAS
TYPE

2

DIABETES REPORT

Featuring Demographic, Charges, Utilization, and Pharmacotherapy Data

Tex as B us ines s Group o n Hea lth

Presented by

in conjunction with Texas Business Group on Health

2008 TEXAS TYPE 2 DIABETES REPORT
CONTENTS

Introduction and Patient Universe Count 2 Texas Nation 34 Texas MSA Comparisons 57 National MSA Comparisons: Use of Services 89 Hospital Charges 1011 Austin 1213 Dallas 1415 El Paso 1617 Ft Worth/Arlington 1819 Houston 2021 San Antonio 2223 Data Methodology 24

Introduction
The Texas Business Group on Health TBGH is pleased to present the Texas Type 2 Diabetes Report for 2008, an overview of demographic, financial, utilization and pharmacotherapy measures for Type 2 diabetes patients in key local markets in the state of Texas The report, intended to help providers and employers identify better opportunities to serve the needs of their patients, organizes Type 2 diabetes benchmarks into six local Texas markets and across Texas as a whole All data are drawn from the Managed Care
Digest Series The 2008 Texas Type 2 Diabetes Report helps TBGH fulfill its mission to help Texas employers play an active and enthusiastic role in collaboration with health plans, providers and purchasers; and be a catalyst in promoting costeffective delivery of quality health care to the benefit of the community

wwwtbghorg
TBGH Members: Bexar County Brundage Management Co City of Amarillo City of Odessa H-E-B Grocery Houston Metropolitan Transit Authority Research and Planning Consultants Weatherford International Westlake Chemical Corporation Dallas-Fort Worth Business Group on Health 131 Members

This third edition features examples of the kinds of patient-level, diseasespecific data on Type 2 diabetes that can be provided by TBGH using the Managed Care Digest Series as a resource Its focus on Texas locales allows for heightened scrutiny of community progress with Type 2 diabetes patient populations TBGH chose Type 2 diabetes high blood glucose levels caused by either a lack of insulin or the bodys inability to use insulin efficiently as the focus of this resource because the Centers for Disease Control estimate that 90 to 95 of all Americans with diabetes–translating to 57 of
the US population–have the Type 2 variety The data in this report covering 2005 through 2007 were gathered by Verispan LLC, Yardley, Pa, a recognized leader in the health care information industry The data provides employers with independent, third-party information against which they can benchmark their own data Please see the back page for information on the data methodology

Marianne Fazen, PhD fazen@dfwbghorg 214-382-3036
President CEO Texas Business Group on Health

Jean Berg

720-922-9451
A1: TOTAL NUMBER OF TYPE 2 DIABETES PATIENT CLAIMS, BY MSA

jeanberg@sanofi-aventisus Employer National Account Manager, sanofi-aventis US LLC

Dana McCormack
danamccormack@sanofi-aventisus Regional Account Manager, sanofi-aventis US LLC

128,000

118,734 119,924

2006

2007

Kevin Womble
Total Number of Patient Claims kevinwomble@sanofi-aventisus Regional Account Manager, sanofi-aventis US LLC 96,000
82,083 75,575

Jim Listak
jimlistak@sanofi-aventisus Regional Account Manager, sanofi-aventis US LLC

64,000
49,809 52,612 45,598

60,185

Managed Care Digest Series 2008
wwwmanagedcaredigestcom
Provided by sanofi-aventis US LLC Bridgewater, NJ Developed and produced by Forte Information
Resources LLC Denver, CO wwwforteinformationcom Data provided by Verispan LLC, Yardley, PA
Cover photo courtesy of the Texas Twist Ranch, wwwtxrangercom

32,000

27,206 27,617

4,067

5,037

0 Austin Dallas El Paso Ft Worth/ Arlington Houston San Antonio

Data source: Verispan LLC 2008

2

TEXAS TYPE 2 DIABETES REPORT 2008

MANAGED CARE DIGEST SERIES

wwwtbghorg

TEXAS AND NATION
B1: DEMOGRAPHICS: AGE AND GENDER1
Percentage of Patients Texas AGE GROUP 017 1835 3664 6579 80 GENDER Male Female 2005 05 47 600 275 73 2006 05 47 579 288 81 2007 04 44 560 302 90 2005 05 38 520 325 113 Nation 2006 04 36 506 333 121 2007 04 34 495 341 127 COMORBIDITIES 0 1 2 2 COMPLICATIONS 0 1 2 2 2005 310 246 334 110 588 288 95 30 Texas 2006 359 240 310 91 616 274 84 26

B2: DEMOGRAPHICS: COMORBIDITIES AND COMPLICATIONS 2, 3
Percentage of Patients 2007 375 236 299 90 591 283 96 30 2005 416 255 266 63 627 282 72 20 Nation 2006 454 240 250 56 642 275 67 17 2007 467 234 243 55 625 282 73 20

409 591

401 599

401 600

455 545

451 549

449 551

B3: HOSPITAL CHARGES PER YEAR FOR TYPE 2 DIABETES PATIENTS, COMMERCIAL INSURANCE PAYERS 4, 5 INPATIENT
Avg Annual Charges/Patient Avg Annual Charges/Patient
2006
2007
43,606

OUTPATIENT
2006
4,488

EMERGENCY ROOM
2007

Avg Annual Charges/Patient

2006

2007
1,331 1,037

50,000 42,500 35,000 27,500 20,000
40,050

47,290

5,200 4,450
3,688

1,450 1,175 900 625 350
1,004

1,347

36,468

4,030 3,277

3,700 2,950 2,200 Texas

Texas

Nation

Nation

Texas

Nation

B4: PROFESSIONAL CHARGES PER YEAR FOR TYPE 2 DIABETES PATIENTS, COMMERCIAL INSURANCE PAYERS 5, 6
Avg Annual Charges per Patient
5,600
4,662 4,916 Texas Nation

4,200 2,800 1,400 0
2,466 2,795 2,229 1,655 1,797 635 581 2,454

Office/ Clinic

Hospital Inpatient

Hospital Outpatient

Ambulatory Surgery Center

Emergency Room

NO COMPLICATIONS TEXAS PATIENT SHARE DECLINES The share of patients across the state of Texas who were diagnosed with Type 2 diabetes and had no complications from the disease dropped moderately in 2007, to 591 from 616 in 2006 As a consequence, the percentage gap between the Texas share and the corresponding national rate 625 rose to 34 percentage points Meanwhile, the share of Texas patients diagnosed with Type 2 diabetes and more than two complications from the disease increased to 30, notably higher than the corresponding national rate 20

Data source: Verispan
LLC 2008 all pages, the percentages are representative of the universe of Type 2 diabetes patients on whom claims data have been collected in a given year 2 A complication is defined as a patient condition caused by the Type 2 diabetes of the patient These conditions are a direct result of having Type 2 diabetes Complications of Type 2 diabetes include, but are not limited to, coronary artery disease, hypoglycemia, nephropathy, neuropathy and retinopathy 3 A comorbidity is a condition a Type 2 diabetes patient may also have, which is not directly related to the diabetes Comorbidities were narrowed down to a subset of conditions which are typically present in patients with Type 2 diabetes Comorbidities of Type 2 diabetes include, but are not limited to, congestive heart failure, coronary artery disease, dysmetabolic syndrome, hyperlipidemia, hypertension and obesity 4 Figures reflect the charges generated for Type 2 diabetes patients by the facilities that delivered care 5 Includes commercial insurance companies, Blue Cross/Blue Shield, HMOs, PPOs, point-of-service plans and exclusive provider organizations 6 Professional charges are those generated by the providers delivering care
to Type 2 diabetes patients in various settings
1 On

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MANAGED CARE DIGEST SERIES

TEXAS TYPE 2 DIABETES REPORT 2008

3

TEXAS AND NATION

Avg Annual Payments per Patient

TEXAS UTILIZATION MEASURES LAG BEHIND THE NATION Patients diagnosed with Type 2 diabetes in Texas reported lower shares than their national counterparts in all six utilization categories profiled in 2007 see graph B5 For example, just 632 of these Texas patients underwent urine microalbumin testing in 2007, notably lower than the 711 share of patients nationally The Texas patient share for blood glucose testing 840 was likewise lower than the national percentage 866 in 2007 TEXAS INSULIN AND NON-INSULIN PATIENT SHARES ARE LOWER In 2007, the shares of Texas Type 2 diabetes patients using insulin and noninsulin therapies alike were smaller than the national shares in each of the four insulin an non-insulin categories profiled Of Texas Type 2 diabetes patients, 344 used any insulin product, for example, compared with 356 nationally Similarly, the share of Texas Type 2 diabetes patients using any non-insulin antidiabetic product was 835 in 2007, slightly less that the national average of 848
NOTE: A1c
tests measure how much glucose has been in the blood during the past 34 months Figures reflect the percentage of Type 2 diabetes patients who have had at least one A1c test in a given year

B5: UTILIZATION: PERCENTAGE OF TYPE 2 DIABETES PATIENTS, BY SERVICE, 2007
90
840 866 838 799 761 711 632 631 692 833 Texas Nation

Percentage of Patients

80
738 699

70 60 50

A1c Test

Blood Glucose Test

Serum Cholesterol Test

Urine Urine Ophthalmologic Glucose Test Microalbumin Test Examination

B6: PHARMACOTHERAPY: AVERAGE ANNUAL PAYMENTS, BY TYPE OF DRUG THERAPY, 2007
1,200 950 700
465 Any Insulin Product Any Non-Insulin Antidiabetic Product 1,004 855

567

450 200

Texas

Nation

B7: OF AND AVG PAYMENTS FOR TYPE 2 DIABETES PATIENT USING INSULIN THERAPIES, 2007
Any Insulin Product IntermediateActing Insulin LongActing Insulin ShortActing Insulin Mixed Insulin

of Pat Avg Costs of Pat Avg Costs of Pat Avg Costs of Pat Avg Costs of Pat Avg Costs Texas Nation 344 356 855 1,004 39 47 321 364 171 191 589 646 129 152 561 654 87 89 660 761

B8: OF AND AVG PAYMENTS FOR TYPE 2 DIABETES PATIENT USING NON-INSULIN THERAPIES, 2007
Any Non-Insulin Antidiabetic Product of Pat Texas Nation 835
848 Avg Costs 465 567 Biguanides of Pat 461 525 Avg Costs 92 110 Sulfonylureas of Pat 331 395 Avg Costs 85 100 Insulin Sensitizing Agents of Pat 225 260 Avg Costs 851 985

Data source: Verispan LLC 2008 Biguanides Improve insulin sensitivity; reduce the production of glucose by the liver, decrease intestinal absorption of glucose, and increase the peripheral uptake and use of circulating glucose Sulfonylureas Stimulate the release of insulin in the pancreas Insulin Sensitizing Agents Improve response to insulin in liver, adipose tissue, and skeletal muscle, resulting in decreased production of glucose by the liver and increased peripheral uptake and use of circulating glucose

4

TEXAS TYPE 2 DIABETES REPORT 2008

MANAGED CARE DIGEST SERIES

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TEXAS MSA COMPARISONS

C1: HOSPITAL INPATIENT CHARGES PER YEAR FOR TYPE 2 DIABETES
Average Annual Charges per Patient 70,000
2006 54,061 2007 57,434 46,483

PATIENTS 1, 2

62,971 55,531 48,238 57,224 49,907 56,765

55,000 40,000

47,658

25,000 10,000

Dallas

Ft Worth/ Arlington

Houston

San Antonio

Texas

C2: PROFESSIONAL CHARGES PER YEAR FOR TYPE 2 DIABETES PATIENTS2, 3
Hospital Inpatient MARKET Austin Dallas Ft Worth/
Arlington Houston San Antonio Texas NATION
2006 2007

HOUSTON HOSPITAL INPATIENT CHARGES DECREASE IN 2007 After averaging the highest profiled annual hospital inpatient charges for Type 2 diabetes patients in 2006 62,971, the Houston MSA saw such charges fall notably in 2007, to 55,531 see table C1 The other three Texas MSAs profiled in this table each saw such charges increase, most notably Ft Worth/Arlington, in which hospital inpatient charges rose to 57,434 in 2007 from 46,483 in 2006 EMERGENCY ROOM CHARGES ARE HIGH THROUGHOUT TEXAS Of the four Texas MSAs reporting average annual professional charges for emergency room ER care for Type 2 diabetes patients in 2007, three observed charges well above the national average of 647 Most notable of these was Dallas, with average ER professional charges of 905, substantially higher than the national average In contrast, patients diagnosed with Type 2 diabetes in San Antonio paid an average of 596 for ER care in 2007, lowest of the markets listed
1

Hospital Outpatient
2006 2007

Ambulatory Surgery Center
2006 2007

Emergency Room
2006 2007 2006

Office/ Clinic
2007

2,503 4,327 5,913 4,954 4,244 4,573 5,653

2,335 4,750 5,282 7,434
4,293 5,276 6,070

958 1,949 1,966 3,361 946 1,737 1,814

1,285 2,325 1,998 2,668 1,094 1,856 1,919

3,195 2,757 1,586 7,175 3,055 3,247 2,791

3,145 2,998 1,362 4,779 4,251 3,272 3,055

589 879 747 669 514 698 575

– 905 818 732 596 741 647

1,408 5,191 950 1,806 784 2,724 2,630

1,452 6,750 1,022 1,751 1,298 3,198 2,818

C3: PHARMACOTHERAPY: AVERAGE ANNUAL PAYMENTS, BY TYPE OF DRUG THERAPY, 20074
Average Annual Payments per Patient
Any Insulin Product Any Non-Insulin Antidiabetic Product

1,200 900 600 300 0

1,019 833 722 546 455 448 473 465 904 798 838 855

411

435

Austin

Dallas

El Paso

Ft Worth/ Arlington

Houston

San Antonio

Texas

Data source: Verispan LLC 2008

NOTE: Facility and professional charges data were unavailable for the El Paso and Austin MSAs

Hospital charges reflect the charges generated for Type 2 diabetes patients by the facilities that delivered care 2 Includes commercial insurance companies, Blue Cross/Blue Shield, HMOs, PPOs, point-of-service plans and exclusive provider organizations 3 Professional charges are those generated by the providers delivering care to Type 2 diabetes patients in various settings 4 Figures reflect the per-patient yearly
payments for Type 2 diabetes patients receiving a particular type of therapy

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MANAGED CARE DIGEST SERIES

TEXAS TYPE 2 DIABETES REPORT 2008

5

TEXAS MSA COMPARISONS: A1C LEVELS

SHARE OF EL PASO PATIENTS WITH POOR A1C RESULTS IS HIGH Of patients diagnosed with Type 2 diabetes in the El Paso MSA, a noteworthy 145 had A1c test results greater than 90, highest of the eight markets listed L1 By comparison, the share of such patients across the state of Texas who had A1c test results in that range was 118 The share of Type 2 diabetes patients in the Dallas MSA with A1c test results in this highest range was 110, lowest of the Texas markets LOW A1C RESULTS SHARE IS HIGHER IN TEXAS THAN NATION In 2007, the share of patients diagnosed with Type 2 diabetes who had A1c test results of 70 or less was slightly higher in the state of Texas 637 than nationally 611 Such patients diagnosed with Type 2 diabetes in the Dallas MSA were most likely, by Texas market, to be in that lowest A1c test results range 649, while patients in the El Paso MSA were least likely 603

L1: PERCENTAGE OF TYPE 2 DIABETES PATIENTS, BY A1C LEVEL RANGE
70 MARKET Austin Dallas El Paso Ft Worth/ Arlington
Houston San Antonio Texas NATION
2006 2007

7179
2006 2007

8090
2006 2007 2006

90
2007

605 618 616 615 614 572 607 583

639 649 603 634 640 610 637 611

157 164 158 168 161 176 167 186

144 154 153 159 148 155 155 174

104 98 107 102 100 116 103 109

91 87 98 90 90 99 91 98

134 119 119 115 125 137 124 122

126 110 145 117 122 136 118 117

L2: PERCENTAGE OF TYPE 2 DIABETES PATIENTS, BY A1C LEVEL RANGE, AUSTIN

72
605

639

2006

2007

Percentage of Patients

54 36 18 0
157 144 134 91 126

104

70

7179

8090

90

L3: PERCENTAGE OF TYPE 2 DIABETES PATIENTS, BY A1C LEVEL RANGE, DALLAS

72
618

649

2006

2007

Percentage of Patients

54 36 18 0
164 154 98 87

119

110

NOTE: A1c tests measure how much glucose has been in the blood during the past 34 months Figures reflect the percentage of Type 2 diabetes patients who have had at least one A1c test in a given year

70

7179

8090

90 Data source: Verispan LLC 2008

6

TEXAS TYPE 2 DIABETES REPORT 2008

MANAGED CARE DIGEST SERIES

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TEXAS MSA COMPARISONS: A1C LEVELS

L4: PERCENTAGE OF TYPE 2 DIABETES PATIENTS, BY A1C LEVEL RANGE, EL PASO
72
616 603 2006 2007

54 36 18 0
158 153 107 98 145

119

70

7179

8090

90

L5:
PERCENTAGE OF TYPE 2 DIABETES PATIENTS, BY A1C LEVEL RANGE, FT WORTH/ARLINGTON
72
615 634 2006 2007

Percentage of Patients

EL PASO PATIENTS HAVE HIGHEST A1C TEST RESULTS SHARE In 2007, the share of patients diagnosed with Type 2 diabetes who had A1c test results greater than 80 was highest, at 243 up from 226 in 2006, in the El Paso MSA L4 The percentage of Type 2 diabetes patients across the state of Texas with A1c test results in that range was a comparatively small 209 down moderately from 227 the previous year HOUSTON PATIENT SHARE WITH LOW A1C TEST RESULTS RISES Of patients with Type 2 diabetes who were diagnosed in the Houston MSA in 2007, 640 had A1c test results in the 70 or less range, up from 614 in 2006 Of the Texas markets profiled, only the El Paso MSA accounted for an annual decrease to 603 from 616 the previous year in the share of Type 2 diabetes patients with A1c test results in this lowest range In the state of Texas, the Type 2 diabetes patient share in this range rose to 611 from 583 in 2006

Percentage of Patients

54 36 18 0
168 159 102 90

115

117

70

7179

8090

90

L6: PERCENTAGE OF TYPE 2 DIABETES PATIENTS, BY A1C LEVEL RANGE, HOUSTON
72
614 640 2006
2007

Percentage of Patients

54 36 18 0
161 148 100 90 125 122

70

7179

8090

90

L7: PERCENTAGE OF TYPE 2 DIABETES PATIENTS, BY A1C LEVEL RANGE, SAN ANTONIO
72 Percentage of Patients
572 610 2006 2007

54 36
176

18 0

155 116 99

137

136

NOTE: A1c tests measure how much glucose has been in the blood during the past 34 months Figures reflect the percentage of Type 2 diabetes patients who have had at least one A1c test in a given year

70

7179

8090

90

Data source: Verispan LLC 2008

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MANAGED CARE DIGEST SERIES

TEXAS TYPE 2 DIABETES REPORT 2008

7

NATIONAL MSA COMPARISONS: USE OF SERVICES

DALLAS UTILIZATION SHARES ARE LOW ACROSS THE BOARD For each of the four services profiled in the report, Type 2 diabetes patients in the Dallas MSA had the lowest percentages of use among the various MSAs profiled see table D1 For example, just 626 of such patients in Dallas had at least one urine microalbumin test in 2007, down from 629 in 2006, lowest by far of the listed MSAs Meanwhile, Denver had the second lowest urine microalbumin patient share in 2007, at 714, still nearly nine percentage points higher than the patient share in Dallas DALLAS TYPE 2 DIABETES EYE
EXAM PATIENT SHARE RISES In 2007, 629 of diabetes patients diagnosed with Type 2 diabetes in the Dallas MSA had an ophthalmologic examination, up from 621 in 2006, and the only utilization measure listed with an annual increase By comparison, this percentage decreased in Minneapolis/ St Paul, to 778 from 781 in 2006, still the highest share of the profiled markets Overall, 692 of Type 2 diabetes patients nationally had at least one ophthalmologic examinations in 2007

D1: PERCENTAGE OF TYPE 2 DIABETES PATIENTS, BY SERVICE
A1c Test Serum Cholesterol Test Ophthalmologic Exam Urine Microalbumin Test

MARKET Dallas Denver Minneapolis/ St Paul Boston Seattle NATION

2006

2007

2006

2007

2006

2007

2006

2007

684 779 861 752 816 739

675 787 859 752 817 738

790 833 877 892 836 837

785 837 883 892 844 838

621 684 781 747 700 688

629 698 778 753 700 692

629 723 816 816 758 708

626 714 825 825 755 711

D2: PERCENTAGE OF TYPE 2 DIABETES PATIENTS RECEIVING A1C TESTS
90 Percentage of Patients 80 70 60 50 Dallas Denver Minneapolis/ St Paul Boston Seattle Nation
684 675 2006 2007 861 859 816 817 779 787 752 752 739 738

D3: PERCENTAGE OF TYPE 2 DIABETES PATIENTS RECEIVING
OPHTHALMOLOGIC EXAMS
90
2006 2007

Percentage of Patients

80 70
621 629 684 698

781 778

747 753 700 700 688 692

60 50 Dallas Denver Minneapolis/ St Paul Boston Seattle Nation

A1c tests measure how much glucose has been in the blood during the past 34 months Figures reflect the percentage of Type 2 diabetes patients who have had at least one A1c test in a given year NOTE: The Seattle MSA also includes Bellevue and Everett, WA

Data source: Verispan LLC 2008

8

TEXAS TYPE 2 DIABETES REPORT 2008

MANAGED CARE DIGEST SERIES

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NATIONAL MSA COMPARISONS: USE OF SERVICES

D4: PERCENTAGE OF TYPE 2 DIABETES PATIENTS, BY A1C LEVEL RANGE
70 MARKET Dallas Denver Minneapolis/ St Paul Boston Seattle NATION
2006 2007

7179
2006 2007

8090
2006 2007 2006

90
2007

618 613 640 638 639 583

649 634 678 663 666 611

164 177 156 155 156 186

154 165 135 146 146 174

98 100 91 92 91 109

87 96 84 83 81 98

119 110 114 114 114 122

110 105 103 109 107 117

D5: PERCENTAGE OF TYPE 2 DIABETES PATIENTS, BY A1C LEVEL RANGE, 2007
70 7179 8090 634 90 678

72 Percentage of Patients 54 36 18 0

649

SHARE OF DALLAS PATIENTS WITH LOW A1C LEVELS GROWS In 2007, 649 of patients in Dallas
diagnosed with Type 2 diabetes had A1c test levels at or below 70, up from 618 in 2006 see table D4 This share was well above the national percentage of 611 Of the remaining four MSAs listed, only Denver 634 reported a lower Type 2 diabetes patient share for this measure than that of Dallas DALLAS PATIENT SHARE WITH HIGHEST A1C LEVELS SHRINKS The share of Dallas Type 2 diabetes patients with A1c levels above 90 fell to 110 in 2007 from 119 in 2006 In spite of this decrease, Dallas Type 2 diabetes patients were most likely, by MSA, to fall within this highest A1c level range Minneapolis/ St Pauls share of Type 2 diabetes patients with very high A1c levels was 103, down from 114 the year before, lowest of the five MSAs profiled Each of the MSAs reported shares lower than the 2007 national share of 117

154 87

165 110 96 105

135 84

103

Dallas

Denver

Minneapolis/St Paul

D6: PERCENTAGE OF TYPE 2 DIABETES PATIENTS, BY A1C LEVEL RANGE, 2007
70 7179 8090 666 611 90

72 Percentage of Patients 54 36 18 0

663

146 83

109

146 81

174 107 98 117

Boston

Seattle

Nation

Data source: Verispan LLC 2008

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MANAGED CARE DIGEST SERIES

TEXAS TYPE 2 DIABETES REPORT
2008

9

NATIONAL MSA COMPARISONS: HOSPITAL CHARGES

DALLAS ER CHARGES ARE BELOW THE NATIONAL AVERAGE Hospital charges per year for emergency room care delivered to Type 2 diabetes patients in 2007 were 1,448 in the Dallas MSA, up 175 from 1,232 in 2006 see table E1 Despite the increase, such charges were 123 lower than average charges for the nation 1,651 in 2007 OUTPATIENT CHARGES ARE HIGH AT DALLAS HOSPITALS IN 2007 Dallas patients diagnosed with Type 2 diabetes paid an average of 5,406 in hospital outpatient charges in 2007, up nearly 1,000 from 4,440 in 2006 and the highest of the markets profiled In contrast, such charges were just 3,350 in Denver in 2007, the lowest of all the listed markets HOSPITAL INPATIENT CHARGES INCREASE ACROSS THE BOARD Average hospital inpatient charges per year for Type 2 diabetes patients increased between 2006 and 2007 for each of the four markets reporting data for both years For example, Dallass average annual hospital inpatient charges grew more than 10, to 54,061 in 2007 from 47,658 in 2006
Figures reflect the charges generated for Type 2 diabetes patients by the facilities that delivered care

E1: HOSPITAL CHARGES PER YEAR FOR TYPE 2
DIABETES PATIENTS

Emergency Room

Hospital Inpatient

Hospital Outpatient

MARKET Dallas Denver Minneapolis/ St Paul Seattle NATION

2006

2007

2006

2007

2006

2007

1,232 1,433 1,614 2,013 1,299

1,448 951 1,958 2,398 1,651

47,658 55,533 53,028 30,312 41,381

54,061 — 57,175 37,314 49,870

4,440 2,597 4,491 3,244 3,901

5,406 3,350 5,034 4,053 4,673

E2: HOSPITAL INPATIENT CHARGES PER YEAR FOR TYPE 2 DIABETES PATIENTS
2006 54,061 55,533 53,028 49,870 47,658 41,381 37,314 30,312 57,175 2007

62,000

Average Charges

52,000

42,000

32,000 — 22,000 Dallas Denver Minneapolis/ St Paul

Seattle

Nation

E3: HOSPITAL OUTPATIENT CHARGES PER YEAR FOR TYPE 2 DIABETES PATIENTS
6,000
4,440 2006 5,406 5,034 4,491 4,053 3,350 3,244 3,901 4,673 2007

Average Charges

4,500

3,000

2,597

1,500

0 Dallas Denver Minneapolis/ St Paul Seattle Nation

NOTE: Hospital charge data were unavailable for the Boston MSA

Data source: Verispan LLC 2008

10

TEXAS TYPE 2 DIABETES REPORT 2008

MANAGED CARE DIGEST SERIES

wwwtbghorg

NATIONAL MSA COMPARISONS: HOSPITAL CHARGES

E4: HOSPITAL INPATIENT CHARGES PER YEAR FOR TYPE 2 DIABETES PATIENTS, BY PAYER

Commercial
Insurance

Medicaid

Medicare

MARKET Dallas Denver Minneapolis/ St Paul Seattle NATION

2006

2007

2006

2007

2006

2007

37,462 32,025 43,095 25,554 36,468

42,746 — 48,666 32,530 43,606

40,027 — 48,259 31,639 37,917

55,165 — 60,267 42,124 47,039

52,483 34,651 58,182 32,134 41,689

58,997 — 58,665 37,292 48,839

E5: HOSPITAL OUTPATIENT CHARGES PER YEAR FOR TYPE 2 DIABETES PATIENTS, BY PAYER

Commercial Insurance

Medicaid

Medicare

MARKET Dallas Denver Minneapolis/ St Paul Seattle NATION

2006

2007

2006

2007

2006

2007

3,367 2,119 3,896 2,585 3,277

4,162 2,667 4,590 3,305 4,030

4,247 2,684 3,476 3,657 3,735

4,449 — 3,894 4,911 4,317

5,561 3,174 4,737 4,137 4,347

7,169 — 5,270 5,004 5,103

INPATIENT CHARGES RISE SHARPLY FOR MEDICAID PATIENTS Between 2006 and 2007, average hospital inpatient charges generated by Type 2 patients with Medicaid coverage in the Dallas MSA jumped, to 55,165 per year from 40,027 Nationwide, inpatient charges for Medicaid recipients increased 241 during this time, to 47,039 from 37,917 Meanwhile, average hospital outpatient charges generated by Dallas Type 2 diabetes patients with Medicaid coverage grew by a comparatively slight 48,
to 4,449 from 4,247 the previous year ER CHARGES IN DALLAS AREA TRAIL NATIONAL AVERAGES In 2007, ER charges per Type 2 diabetes patient in the Dallas MSA were lower than the national averages, regardless of payer type For such patients covered by a commercial health plan, for example, such charges were significantly lower in Dallas 1,097 than nationally 1,331 For Medicaid recipients, charges for ER care in Dallas 1,545 were 155 lower than the national average 1,828 in 2007
Figures reflect the charges generated for Type 2 diabetes patients by the facilities that delivered care Includes commercial insurance companies, Blue Cross/Blue Shield, HMOs, PPOs, point-ofservice plans and exclusive provider organizations

E6: HOSPITAL EMERGENCY ROOM CHARGES PER YEAR FOR TYPE 2 DIABETES PATIENTS, BY PAYER, 2007
3,200
Commercial Insurance Medicaid Medicare 2,824 2,240 2,254 1,756 1,748 1,526 1,331 1,097 871 924 1,828 1,799

Average Charges

2,400
1,545

1,600

800

0 Dallas Denver Minneapolis/ St Paul Seattle Nation

Data source: Verispan LLC 2008

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MANAGED CARE DIGEST SERIES

TEXAS TYPE 2 DIABETES REPORT 2008

11

AUSTIN
F1: DEMOGRAPHICS: AGE AND GENDER1
Percentage of
Patients

F2: DEMOGRAPHICS: COMORBIDITIES AND COMPLICATIONS2, 3
Percentage of Patients Texas 2007 04 44 560 302 90 COMORBIDITIES 0 1 2 2 COMPLICATIONS 0 1 2 2 2005 236 273 378 113 624 267 84 25 Austin 2006 273 271 363 92 651 255 73 22 2007 288 267 352 93 627 265 83 25 Texas 2007 375 236 299 90 591 283 96 30

AGE GROUP 017 1835 3664 6579 80 GENDER Male Female

2005 04 66 709 184 38

Austin 2006 05 65 714 179 37

2007 03 61 689 203 45

384 616

374 626

369 631

401 600

GROWING SHARE OF PATIENTS HAS NO COMORBIDITIES The percentage of Austinarea Type 2 diabetes patients who had no comorbidities edged up to 288 in 2007 from 273 in 2006 In spite of this rise, the Austin patient share remained 10 percentage points less than the overall Texas share of patients with no comorbidities 375 PROFESSIONAL CHARGES REMAIN LOW IN AUSTIN MSA In 2007, average professional charges for care delivered to Type 2 patients with commercial health plan coverage were sharply lower in Austin than statewide across all facility types profiled For example, 2007 average professional charges for office/clinic services for such patients were 40 lower in Austin 1,458 than in Texas 2,466
NOTE: Hospital charge data
were unavailable for the Austin MSA in 2006 and 2007

F3: DEMOGRAPHICS: COMORBIDITIES3
Austin 2006 Austin 2007 Texas 2007

68 Percentage of Patients
544 555

611 455 445 389

51 34 17 0

1 Comorbidity or fewer

2 or more Comorbidities

F4: PROFESSIONAL CHARGES PER YEAR FOR TYPE 2 DIABETES PATIENTS, COMMERCIAL INSURANCE PAYERS 5, 7
Average Annual Charges per Patient 5,000 3,750
2,748 2,991 4,662 Austin 2006 Austin 2007 Texas 2007

2,147 2,616 1,655 231 212 635 2,795 2,466 1,458 1,404

2,500 1,250 0
1,340 1,025

Hospital Inpatient

Hospital Outpatient

Ambulatory Surgery Center

Emergency Room

Office/ Clinic

Data source: Verispan LLC 2008 all pages, the percentages are representative of the universe of Type 2 diabetes patients on whom claims data have been collected in a given year 2 A complication is defined as a patient condition caused by the Type 2 diabetes of the patient These conditions are a direct result of having Type 2 diabetes Complications of Type 2 diabetes include, but are not limited to, coronary artery disease, hypoglycemia, nephropathy, neuropathy and retinopathy 3 A comorbidity is a condition a Type 2 diabetes patient may also have, which is not directly related
to the diabetes Comorbidities were narrowed down to a subset of conditions which are typically present in patients with Type 2 diabetes Comorbidities of Type 2 diabetes include, but are not limited to, congestive heart failure, coronary artery disease, dysmetabolic syndrome, hyperlipidemia, hypertension and obesity 4 Includes commercial insurance companies, Blue Cross/Blue Shield, HMOs, PPOs, point-of-service plans and exclusive provider organizations 5 Professional charges are those generated by the providers delivering care to Type 2 diabetes patients in various settings
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AUSTIN

F5: UTILIZATION: PERCENTAGE OF TYPE 2 DIABETES PATIENTS, BY SERVICE
100
903 895 Austin 2006 865 861 799 737 761 733 Austin 2007 Texas 2007

85 70 55 40

840 803 791 699

657 654 632

585 577

631

A1c Test

Blood Glucose Test

Serum Cholesterol Test

Urine Urine Ophthalmologic Glucose Test Microalbumin Test Examination

SHARE OF AUSTIN PATIENTS RECEIVING A1C TEST DECLINES In 2007, 791 of Type 2 diabetes patients in the Austin MSA were administered an A1c test, down from 803 the year before Despite the moderate
decrease, the Austin A1c rate exceeded the statewide A1c rate 699 by nearly 10 percentage points USE OF LONG-ACTING INSULIN INCREASES The percentage of Type 2 diabetes patients in the Austin MSA who used a long-acting insulin product increased slightly in 2007, to 194 from 181 in 2006 However, overall insulin use among Type 2 diabetes patients in Austin fell in 2007, to 343 of Type 2 patients from 348 in 2006 Statewide, 344 of Type 2 diabetes patients used any insulin product in 2007, and 171 used a long-acting insulin product
NOTE: A1c tests measure how much glucose has been in the blood during the past 34 months Figures reflect the percentage of Type 2 diabetes patients who have had at least one A1c test in a given year Biguanides Improve insulin sensitivity; reduce the production of glucose by the liver, decrease intestinal absorption of glucose, and increase the peripheral uptake and use of circulating glucose Sulfonylureas Stimulate the release of insulin in the pancreas Insulin Sensitizing Agents Improve response to insulin in liver, adipose tissue, and skeletal muscle, resulting in decreased production of glucose by the liver and increased peripheral uptake and use of
circulating glucose

Percentage of Patients

F6: PHARMACOTHERAPY: AVERAGE ANNUAL PAYMENTS, BY TYPE OF DRUG THERAPY
Any Insulin Product Any Non-Insulin Antidiabetic Product 1,019 876 855

Avg Annual Payments per Patient

1,200 900 600 300 0

550

546 465

Austin 2006

Austin 2007

Texas 2007

F7: OF AND AVG PAYMENTS FOR TYPE 2 DIABETES PATIENTS USING INSULIN THERAPIES
Any Insulin Product Austin 2006 Austin 2007 Texas 2007 IntermediateActing Insulin LongActing Insulin ShortActing Insulin Mixed Insulin

of Pat Avg Costs of Pat Avg Costs of Pat Avg Costs of Pat Avg Costs of Pat Avg Costs 348 343 344 876 1,019 855 25 21 39 296 264 321 181 194 171 546 641 589 148 148 129 628 683 561 56 54 87 655 665 660

F8: OF AND AVG PAYMENTS FOR TYPE 2 DIABETES PATIENT USING NON-INSULIN THERAPIES
Any Non-Insulin Antidiabetic Product of Pat Austin 2006 Austin 2007 Texas 2007 827 837 835 Avg Costs 550 546 465 Biguanides of Pat 446 447 461 Avg Costs 128 99 92 Sulfonylureas of Pat 289 298 331 Avg Costs 104 87 85 Insulin Sensitizing Agents of Pat 332 262 225 Avg Costs 878 927 851

Data source: Verispan LLC 2008

wwwtbghorg

MANAGED CARE DIGEST SERIES

TEXAS TYPE 2 DIABETES REPORT
2008

13

DALLAS
G1: DEMOGRAPHICS: AGE AND GENDER1
Percentage of Patients

G2: DEMOGRAPHICS: COMORBIDITIES AND COMPLICATIONS 2, 3
Percentage of Patients Texas 2007 04 44 560 302 90 COMORBIDITIES 0 1 2 2 COMPLICATIONS 0 1 2 2 2005 293 241 339 128 571 290 104 36 Dallas 2006 358 236 305 101 603 276 92 29 2007 396 226 280 98 577 284 104 35 Texas 2007 375 236 299 90 591 283 96 30

AGE GROUP 017 1835 3664 6579 80 GENDER Male Female

2005 06 49 598 276 72

Dallas 2006 05 46 568 299 82

2007 04 42 542 318 94

399 601

386 614

385 615

401 600

LARGER SHARE OF DALLAS PATIENTS IS COMORBIDITY-FREE Of all Type 2 diabetes patients in the Dallas MSA, 396 were without a diagnosed comorbidity in 2007, up from 358 in 2006 and from 293 in 2005 see table G2 A higher percentage of Type 2 diabetes patients in Dallas 139 had two or more complications from this disease than did such patients in Texas 126 HOSPITAL INPATIENT CHARGES CLIMB FOR DALLAS PATIENTS Average annual hospital inpatient charges for Type 2 diabetes patients in Dallas with commerical insurance grew 141, to 42,746 from 37,462 in 2006 Still, these charges were notably lower than the statewide average 47,290 in 2007 Average professional
office charges for commercially insured Type 2 diabetes patients were nearly twice as high in Dallas 4,904 as in Texas 2,466
14

G3: HOSPITAL CHARGES PER YEAR FOR TYPE 2 DIABETES PATIENTS, COMMERCIAL INSURANCE PAYERS 4, 5 INPATIENT
Avg Annual Charges/Patient Avg Annual Charges/Patient 50,000
42,746 47,290 37,462

OUTPATIENT
4,600 3,700 2,800 1,900 1,000 Dallas Dallas 2006 2007 Texas 2007
3,367 4,162 4,488

EMERGENCY ROOM
Avg Annual Charges/Patient 1,500 1,250 1,000 750 500 Dallas Dallas 2006 2007 Texas 2007
885 1,097 1,347

42,500 35,000 27,500 20,000

Dallas Dallas 2006 2007

Texas 2007

G4: PROFESSIONAL CHARGES PER YEAR FOR TYPE 2 DIABETES PATIENTS, COMMERCIAL INSURANCE PAYERS 5, 6
Average Annual Charges per Patient 6,000
4,662 Dallas 2006 Dallas 2007 Texas 2007 4,904 3,741 2,404 2,795 2,359 2,466

4,500 3,000

4,242 3,837

2,042 1,974 1,655

1,500 0

700 720 635

Hospital Inpatient

Hospital Outpatient

Ambulatory Surgery Centers

Emergency Room

Office/ Clinic

Data source: Verispan LLC 2008 all pages, the percentages are representative of the universe of Type 2 diabetes patients on whom claims data have been collected in a given year 2 A complication is defined as a patient
condition caused by the Type 2 diabetes of the patient These conditions are a direct result of having Type 2 diabetes Complications of Type 2 diabetes include, but are not limited to, coronary artery disease, hypoglycemia, nephropathy, neuropathy and retinopathy 3 A comorbidity is a condition a Type 2 diabetes patient may also have, which is not directly related to the diabetes Comorbidities were narrowed down to a subset of conditions which are typically present in patients with Type 2 diabetes Comorbidities of Type 2 diabetes include, but are not limited to, congestive heart failure, coronary artery disease, dysmetabolic syndrome, hyperlipidemia, hypertension and obesity 4 Figures reflect the charges generated for Type 2 diabetes patients by the facilities that delivered care 5 Includes commercial insurance companies, Blue Cross/Blue Shield, HMOs, PPOs, point-of-service plans and exclusive provider organizations 6 Professional charges are those generated by the providers delivering care to Type 2 diabetes patients in various settings
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DALLAS

G5: UTILIZATION: PERCENTAGE OF TYPE 2 DIABETES PATIENTS,
BY SERVICE
90
Percentage of Patients
Dallas 2006 840 841 840 785 790 675 699 626 629 632 621 631 629 799 768 768 761 Dallas 2007 Texas 2007

80 70 60 50 A1c Test Blood Glucose Test
684

Serum Cholesterol Test

Urine Urine Ophthalmologic Glucose Test Microalbumin Test Examination

DALLAS A1C PATIENT TEST SHARE TRAILS THE STATE OF TEXAS In 2007, the share of Type 2 diabetes patients in Dallas who received an A1c test was 675, down slightly from 684 in 2006 G5 Statewide, 699 of Type 2 diabetes patients were administered at least one A1c test, down fractionally from 701 the year before NON-INSULIN COSTS DECLINE FOR DALLAS TYPE 2 PATIENTS Average costs per Type 2 diabetes patient per year in the Dallas MSA for any non-insulin antidiabetic product fell slightly in 2007, to 455 from 463 in 2006 During the same period, any insulin product costs for these Type 2 diabetes patients climbed, to 833 from 714 the prior year In spite of this increase, insulin costs remained higher for Type 2 diabetes patients statewide 855 in 2007

G6: PHARMACOTHERAPY: AVERAGE ANNUAL PAYMENTS, BY TYPE OF DRUG THERAPY
Avg Annual Payments per Patient
Any Insulin Product Any Non-Insulin Antidiabetic Product 833 714
855

900 750 600
463

455

465

450 300

Dallas 2006

Dallas 2007

Texas 2007

G7: OF AND AVG PAYMENTS FOR TYPE 2 DIABETES PATIENTS USING INSULIN THERAPIES
Any Insulin Product Dallas 2006 Dallas 2007 Texas 2007 330 344 344 714 833 855 IntermediateActing Insulin 48 40 39 296 333 321 LongActing Insulin 134 157 171 512 584 589 ShortActing Insulin 123 131 129 468 535 561 Mixed Insulin 106 101 87 582 670 660

of Pat Avg Costs of Pat Avg Costs of Pat Avg Costs of Pat Avg Costs of Pat Avg Costs

G8: OF AND AVG PAYMENTS FOR TYPE 2 DIABETES PATIENT USING NON-INSULIN THERAPIES
Any Non-Insulin Antidiabetic Product of Pat Dallas 2006 Dallas 2007 Texas 2007 823 823 835 Avg Costs 463 455 465 Biguanides of Pat 471 479 461 Avg Costs 121 93 92 Sulfonylureas of Pat 342 331 331 Avg Costs 102 84 85 Insulin Sensitizing Agents of Pat 278 219 225 Avg Costs 819 845 851

NOTE: A1c tests measure how much glucose has been in the blood during the past 34 months Figures reflect the percentage of Type 2 diabetes patients who have had at least one A1c test in a given year Biguanides Improve insulin sensitivity; reduce the production of glucose by the liver, decrease intestinal absorption of glucose,
and increase the peripheral uptake and use of circulating glucose Sulfonylureas Stimulate the release of insulin in the pancreas Insulin Sensitizing Agents Improve response to insulin in liver, adipose tissue, and skeletal muscle, resulting in decreased production of glucose by the liver and increased peripheral uptake and use of circulating glucose

Data source: Verispan LLC 2008

wwwtbghorg

MANAGED CARE DIGEST SERIES

TEXAS TYPE 2 DIABETES REPORT 2008

15

EL PASO
H1: DEMOGRAPHICS: AGE AND GENDER1
Percentage of Patients

H2: DEMOGRAPHICS: COMORBIDITIES AND COMPLICATIONS 2, 3
Percentage of Patients Texas 2007 04 44 560 302 90 COMORBIDITIES 0 1 2 2 COMPLICATIONS 0 1 2 2 2005 409 250 266 75 653 246 79 22 El Paso 2006 442 252 249 57 698 215 70 17 2007 394 261 277 68 652 249 79 20 Texas 2007 375 236 299 90 591 283 96 30

AGE GROUP 017 1835 3664 6579 80 GENDER Male Female

2005 06 59 588 274 73

El Paso 2006 05 51 539 317 89

2007 06 59 545 295 95

390 610

413 587

418 582

401 600

PATIENT SHARE WITH 2 COMORBIDITIES RISES IN EL PASO The percentage of Type 2 diabetes patients in the El Paso MSA with two or more diagnosed comorbidities grew to 345 in 2007 from 306 in 2006 H3 By
comparison, a moderately larger share of Type 2 diabetes patients in the state of Texas 389 were diagnosed with at least two comorbidities in 2007 OFFICE PROVIDER COSTS ARE LOW FOR EL PASO PATIENTS Average professional office charges for care delivered to Type 2 diabetes patients in El Paso with commercial insurance coverage dropped notably in 2007, to 714 from 1,000 in 2006 Such charges were substantially less than the statewide average of 2,466 in 2007

H3: DEMOGRAPHICS: COMORBIDITIES3
694 El Paso 2006 655 611 El Paso 2007 Texas 2007

72

Percentage of Patients

54 36 18 0
306 345 389

1 Comorbidity or fewer

2 or more Comorbidities

H4: PROFESSIONAL CHARGES PER YEAR FOR TYPE 2 DIABETES PATIENTS, COMMERCIAL INSURANCE PAYERS 5, 6
Average Annual Charges Per Patient 6,400 4,800 3,200
1,420 El Paso 2006 4,770 5,033 4,662 3,463 2,795 1,655 274 413 — 635 714 1,000 2,466 El Paso 2007 Texas 2007

1,600 0

1,336

Hospital Inpatient

Hospital Outpatient

Ambulatory Surgery Center

Emergency Room

Office/ Clinic

NOTE: Hospital charge data were unavailable for the El Paso MSA in 2006 and 2007

Data source: Verispan LLC 2008 On all pages, the percentages are representative of the universe
of Type 2 diabetes patients on whom claims data have been collected in a given year 2 A complication is defined as a patient condition caused by the Type 2 diabetes of the patient These conditions are a direct result of having Type 2 diabetes Complications of Type 2 diabetes include, but are not limited to, coronary artery disease, hypoglycemia, nephropathy, neuropathy and retinopathy 3 A comorbidity is a condition a Type 2 diabetes patient may also have, which is not directly related to the diabetes Comorbidities were narrowed down to a subset of conditions which are typically present in patients with Type 2 diabetes Comorbidities of Type 2 diabetes include, but are not limited to, congestive heart failure, coronary artery disease, dysmetabolic syndrome, hyperlipidemia, hypertension and obesity 4 Figures reflect the charges generated for Type 2 diabetes patients by the facilities that delivered care 5 Includes commercial insurance companies, Blue Cross/Blue Shield, HMOs, PPOs, point-of-service plans and exclusive provider organizations 6 Professional charges are those generated by the providers delivering care to Type 2 diabetes patients in various settings
1

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DIABETES REPORT 2008

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EL PASO

H5: UTILIZATION: PERCENTAGE OF TYPE 2 DIABETES PATIENTS, BY SERVICE
El Paso 2006 El Paso 2007 Texas 2007

85 Percentage of Patients 75 65 55 45 A1c Test

788 779 655 699 649

840 760 799 781 766 761 748

600 604

632 571 556

631

Blood Glucose Test

Serum Cholesterol Test

Urine Urine Ophthalmologic Glucose Test Microalbumin Test Examination

H6: PHARMACOTHERAPY: AVERAGE ANNUAL PAYMENTS, BY TYPE OF DRUG THERAPY
Avg Annual Payments per Patient
900 750
618 Any Insulin Product Any Non-Insulin Antidiabetic Product 855

LARGER SHARE OF EL PASO PATIENTS RECEIVES EYE EYAMS The share of El Paso Type 2 diabetes patients receiving ophthalmologic exams rose moderately in 2007, to 571 from 556 in 2006 H5, but still trailed the statewide average 631 by six percentage points With the exception of urine glucose tests, the shares of Type 2 diabetes patients receiving at least one test per year was lower in El Paso than in Texas in every utilization category profiled PER-PATIENT INSULIN COSTS ARE LOW IN THE EL PASO MSA Insulin treatment costs per Type 2 diabetes patient per year in the El Paso MSA were 722, up notably from
618 in 2006 However, these patients paid considerably less for insulin therapy, on average, than their counterparts across the state of Texas 855, up from 736 the previous year
NOTE: A1c tests measure how much glucose has been in the blood during the past 34 months Figures reflect the percentage of Type 2 diabetes patients who have had at least one A1c test in a given year Biguanides Improve insulin sensitivity; reduce the production of glucose by the liver, decrease intestinal absorption of glucose, and increase the peripheral uptake and use of circulating glucose Sulfonylureas Stimulate the release of insulin in the pancreas Insulin Sensitizing Agents Improve response to insulin in liver, adipose tissue, and skeletal muscle, resulting in decreased production of glucose by the liver and increased peripheral uptake and use of circulating glucose

722

600
448 465

450 300

408

El Paso 2006

El Paso 2007

Texas 2007

H7: OF AND AVG PAYMENTS FOR TYPE 2 DIABETES PATIENTS USING INSULIN THERAPIES
Any Insulin Product El Paso 2006 El Paso 2007 Texas 2007 292 291 344 618 722 855 IntermediateActing Insulin 43 27 39 255 254 321 LongActing Insulin 137 162 171 497 512 589 ShortActing Insulin
90 87 129 447 535 561 Mixed Insulin 110 98 87 480 580 660

of Pat Avg Costs of Pat Avg Costs of Pat Avg Costs of Pat Avg Costs of Pat Avg Costs

H8: OF AND AVG PAYMENTS FOR TYPE 2 DIABETES PATIENT USING NON-INSULIN THERAPIES
Any Non-Insulin Antidiabetic Product of Pat El Paso 2006 El Paso 2007 Texas 2007 866 881 835 Avg Costs 408 448 465 Biguanides of Pat 486 493 461 Avg Costs 103 80 92 Sulfonylureas of Pat 350 344 331 Avg Costs 95 82 85 Insulin Sensitizing Agents of Pat 275 244 225 Avg Costs 701 756 851

Data source: Verispan LLC 2008

wwwtbghorg

MANAGED CARE DIGEST SERIES

TEXAS TYPE 2 DIABETES REPORT 2008

17

FT WORTH/ARLINGTON
I1: DEMOGRAPHICS: AGE AND GENDER1
Percentage of Patients 2005 08 51 632 246 63 Ft Worth/Arlington 2006 08 51 604 265 73 2007 04 49 593 275 79 Texas 2007 04 44 560 302 90

I2: DEMOGRAPHICS: COMORBIDITIES AND COMPLICATIONS 2, 3
Percentage of Patients Ft Worth/Arlington 2005 2006 240 248 382 131 548 300 114 38 276 249 365 111 574 288 100 38 2007 292 252 350 107 552 291 115 42 Texas 2007 375 236 299 90 591 283 96 30

AGE GROUP 017 1835 3664 6579 80 GENDER Male Female

COMORBIDITIES 0 1 2 2 COMPLICATIONS 0 1 2 2

414 586

415 585

411 589

401
600

Average Annual Charges per Patient

COMPLICATION-FREE FT WORTH PATIENT SHARE DECREASES The share of patients in the Ft Worth/Arlington MSA diagnosed with Type 2 diabetes and no complications from the disease dropped in 2007, to 552 from 574 in 2006 I2 Conversely, the share of these same Type 2 diabetes patients with two or more diagnosed complications from the disease was 157, notably higher than the Texas mark 126 FT WORTH HOSPITAL INPATIENT CHARGES DECLINE SHARPLY Average professional inpatient charges for Type 2 diabetes patients in the FtWorth/Arlington MSA with commercial insurance decreased in 2007, to 4,888 from 5,371 in 2006 and from 5,572 in 2005 However, these charges continued to exceed the statewide average to 4,662 from 4,448 the previous year by more than 200

I3: HOSPITAL CHARGES PER YEAR FOR TYPE 2 DIABETES PATIENTS, COMMERCIAL INSURANCE PAYERS 4, 5 INPATIENT
Avg Annual Charges/Patient Avg Annual Charges/Patient 50,000 42,500
34,971 45,603 47,290

OUTPATIENT
Avg Annual Charges/Patient 4,600
3,653 4,488

EMERGENCY ROOM
1,500
1,256 1,347

3,450 2,300 1,150 0

2,784

1,250 1,000 750 500 Ft Worth Ft Worth Texas 2006 2007 2007
928

35,000 27,500 20,000 Ft Worth Ft
Worth Texas 2006 2007 2007

Ft Worth Ft Worth Texas 2006 2007 2007

I4: PROFESSIONAL CHARGES PER YEAR FOR TYPE 2 DIABETES PATIENTS, COMMERCIAL INSURANCE PAYERS 5, 6
6,400
5,371 Ft Worth/Arlington 2006 4,888 4,662 Ft Worth/Arlington 2007 Texas 2007

4,800 3,200

2,795 2,028 2,164 1,422 1,655 1,501 533 537 635 872 911

2,466

1,600 0

Hospital Inpatient

Hospital Outpatient

Ambulatory Surgery Center

Emergency Room

Office/ Clinic

Data source: Verispan LLC 2008 all pages, the percentages are representative of the universe of Type 2 diabetes patients on whom claims data have been collected in a given year 2 A complication is defined as a patient condition caused by the Type 2 diabetes of the patient These conditions are a direct result of having Type 2 diabetes Complications of Type 2 diabetes include, but are not limited to, coronary artery disease, hypoglycemia, nephropathy, neuropathy and retinopathy 3 A comorbidity is a condition a Type 2 diabetes patient may also have, which is not directly related to the diabetes Comorbidities were narrowed down to a subset of conditions which are typically present in patients with Type 2 diabetes Comorbidities of Type 2 diabetes include, but
are not limited to, congestive heart failure, coronary artery disease, dysmetabolic syndrome, hyperlipidemia, hypertension and obesity 4 Figures reflect the charges generated for Type 2 diabetes patients by the facilities that delivered care 5 Includes commercial insurance companies, Blue Cross/Blue Shield, HMOs, PPOs, point-of-service plans and exclusive provider organizations 6 Professional charges are those generated by the providers delivering care to Type 2 diabetes patients in various settings
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FT WORTH/ARLINGTON

I5: UTILIZATION: PERCENTAGE OF TYPE 2 DIABETES PATIENTS, BY SERVICE
Ft Worth/Arlington 2006 808 840 775 808 799 776 687 689 699 625 622 632 631 625 613 Ft Worth/Arlington 2007 767 761 762 Texas 2007

85 Percentage of Patients 75 65 55 45 A1c Test

Blood Glucose Test

Serum Cholesterol Test

Urine Urine Ophthalmologic Glucose Test Microalbumin Test Examination

FT WORTH PATIENTS ARE LESS LIKELY TO RECEIVE SERVICES Patients diagnosed with Type 2 diabetes in the Ft Worth/Arlington MSA were less likely than Type 2 diabetes patients across the state of Texas to receive any of six
profiled services I5 For example, 687 of Type 2 diabetes patients in the Ft Worth/Arlington MSA underwent A1c testing in 2007, compared with 699 of such patients statewide PER-PATIENT INSULIN COSTS CLIMB IN FT WORTH/ARLINGTON Type 2 diabetes patients in the Ft Worth/Arlington MSA paid on average 904 per year for insulin therapy in 2007, up considerably from 783 in 2006 Noninsulin costs also increased for Type 2 diabetes patients in FtWorth/Arlington over this period, to 473 from 466 the previous year

I6: PHARMACOTHERAPY: AVERAGE ANNUAL PAYMENTS, BY TYPE OF DRUG THERAPY
Any Insulin Product

Avg Annual Payments per Patient

950
783

Any Non-Insulin Antidiabetic Product 904 855

775 600
466 473 465

425 250

Ft Worth 2006

Ft Worth 2007

Texas 2007

I7: OF AND AVG PAYMENTS FOR TYPE 2 DIABETES PATIENTS USING INSULIN THERAPIES
Any Insulin Product Ft Worth 2006 Ft Worth 2007 Texas 2007 IntermediateActing Insulin LongActing Insulin ShortActing Insulin Mixed Insulin

of Pat Avg Costs of Pat Avg Costs of Pat Avg Costs of Pat Avg Costs of Pat Avg Costs 331 333 344 783 904 855 38 32 39 292 327 321 157 173 171 548 628 589 130 136 129 543 612 561 86 75 87 590 662 660 NOTE: A1c tests
measure how much glucose has been in the blood during the past 34 months Figures reflect the percentage of Type 2 diabetes patients who have had at least one A1c test in a given year Biguanides Improve insulin sensitivity; reduce the production of glucose by the liver, decrease intestinal absorption of glucose, and increase the peripheral uptake and use of circulating glucose Sulfonylureas Stimulate the release of insulin in the pancreas Insulin Sensitizing Agents Improve response to insulin in liver, adipose tissue, and skeletal muscle, resulting in decreased production of glucose by the liver and increased peripheral uptake and use of circulating glucose

I8: OF AND AVG PAYMENTS FOR TYPE 2 DIABETES PATIENT USING NON-INSULIN THERAPIES
Any Non-Insulin Antidiabetic Product of Pat Ft Worth 2006 Ft Worth 2007 Texas 2007 831 833 835 Avg Costs 466 473 465 Biguanides of Pat 478 472 461 Avg Costs 118 91 92 Sulfonylureas of Pat 343 323 331 Avg Costs 98 84 85 Insulin Sensitizing Agents of Pat 285 222 225 Avg Costs 830 887 851

Data source: Verispan LLC 2008

wwwtbghorg

MANAGED CARE DIGEST SERIES

TEXAS TYPE 2 DIABETES REPORT 2008

19

HOUSTON
J1: DEMOGRAPHICS: AGE AND
GENDER1
Percentage of Patients

J2: DEMOGRAPHICS: COMORBIDITIES AND COMPLICATIONS 2, 3
Percentage of Patients Texas 2007 04 44 560 302 90 COMORBIDITIES 0 1 2 2 COMPLICATIONS 0 1 2 2 2005 299 239 338 124 574 298 98 31 Houston 2006 366 231 301 102 600 282 90 27 2007 382 233 286 100 575 293 102 31 Texas 2007 375 236 299 90 591 283 96 30

AGE GROUP 017 1835 3664 6579 80 GENDER Male Female

2005 04 53 664 223 55

Houston 2006 04 55 638 240 63

2007 04 50 596 266 85

392 608

373 627

376 625

401 600

Avg Annual Charges per Patient

HOUSTON WORKING AGE TYPE 2 DIABETES PATIENT SHARE FALLS The share of patients diagnosed with Type 2 diabetes in the Houston MSA who were between 18 and 64 years of age declined in 2007, to 646 from 693 in 2006, yet still exceeded the corresponding rate across the state of Texas 604 J1 Meanwhile, the share of Houston Type 2 diabetes patients with two or more complications from the disease likewise exceeded the statewide average 133 vs 126 PROFESSIONAL OFFICE CHARGES ARE HIGHEST IN HOUSTON With the exception of office visits, professional charges are higher in Houston than in Texas for commercially insured type 2 diabetes patients in every patient setting
profiled in 2007 For example, hospital charges per Type 2 diabetes patient per year were higher in Houston than Dallas for inpatient and outpatient hospital settings alike
20

J3: HOSPITAL CHARGES PER YEAR FOR TYPE 2 DIABETES PATIENTS, COMMERCIAL INSURANCE PAYERS 4, 5 INPATIENT
Avg Annual Charges/Patient Avg Annual Charges/Patient
52,000 39,000 26,000 13,000 0 Houston Houston Texas 2006 2007 2007
49,370 51,726 47,290

OUTPATIENT
5,200 4,500 3,800 3,100 2,400 Houston Houston Texas 2006 2007 2007
4,349

EMERGENCY ROOM
Avg Annual Charges/Patient
1,600 1,200 800 400 0 Houston Houston Texas 2006 2007 2007
917 1,502 1,347 4,488

5,018

J4: PROFESSIONAL CHARGES PER YEAR FOR TYPE 2 DIABETES PATIENTS, COMMERCIAL INSURANCE PAYERS 5, 6
7,200 5,400 3,600 1,800 0
2,028 1,655 624 654 635 — 5,230 5,424 4,662 3,607 2,795 1,425 2,466 1,519 Houston 2006 4,963 Houston 2007 Texas 2007

Hospital Inpatient

Hospital Outpatient

Ambulatory Surgery Center

Emergency Room

Office/ Clinic

Data source: Verispan LLC 2008 the percentages are representative of the universe of Type 2 diabetes patients on whom claims data have been collected in a given year 2 A complication is defined as a patient condition
caused by the Type 2 diabetes of the patient These conditions are a direct result of having Type 2 diabetes Complications of Type 2 diabetes include, but are not limited to, coronary artery disease, hypoglycemia, nephropathy, neuropathy and retinopathy 3 A comorbidity is a condition a Type 2 diabetes patient may also have, which is not directly related to the diabetes Comorbidities were narrowed down to a subset of conditions which are typically present in patients with Type 2 diabetes Comorbidities of Type 2 diabetes include, but are not limited to, congestive heart failure, coronary artery disease, dysmetabolic syndrome, hyperlipidemia, hypertension and obesity 4 Figures reflect the charges generated for Type 2 diabetes patients by the facilities that delivered care 5 Includes commercial insurance companies, Blue Cross/Blue Shield, HMOs, PPOs, point-of-service plans and exclusive provider organizations 6 Professional charges are those generated by the providers delivering care to Type 2 diabetes patients in various settings
1 On all pages,

TEXAS TYPE 2 DIABETES REPORT 2008

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HOUSTON

J5: UTILIZATION: PERCENTAGE OF TYPE 2 DIABETES
PATIENTS, BY SERVICE
803 840 787 Houston 2006 761 760 799 765 761 761 Houston 2007 Texas 2007

85

75 65 55 45

656 699 649 610 605 632 631 611 601

A1c Test

Blood Glucose Test

Serum Cholesterol Test

Urine Urine Ophthalmologic Glucose Test Microalbumin Test Examination

HOUSTON DIABETES SERVICES SHARES TRAIL STATE AVERAGE The shares of patients diagnosed with Type 2 diabetes who received various services for the disease in 2007 were lower in the Houston MSA than across the state of Texas for every service profiled, with one exception: State and Houston averages for patients receiving at least one urine glucose test were both at 761 J5 TEXAS PER-PATIENT INSULIN PAYMENTS TOP HOUSTON RATES Although average annual payments per Houston Type 2 diabetes patient per year for any insulin product rose, to 798 from 670 in 2006, the ratio still trailed the statewide average for this measure 855 J6 Type 2 diabetes patients across the state of Texas likewise had higher non-insulin antidiabetic product payments than than their Houston counterparts 465 vs 411
NOTE: A1c tests measure how much glucose has been in the blood during the past 34 months Figures reflect the percentage of Type 2
diabetes patients who have had at least one A1c test in a given year Biguanides Improve insulin sensitivity; reduce the production of glucose by the liver, decrease intestinal absorption of glucose, and increase the peripheral uptake and use of circulating glucose Sulfonylureas Stimulate the release of insulin in the pancreas Insulin Sensitizing Agents Improve response to insulin in liver, adipose tissue, and skeletal muscle, resulting in decreased production of glucose by the liver and increased peripheral uptake and use of circulating glucose

Percentage of Patients

J6: PHARMACOTHERAPY: AVERAGE ANNUAL PAYMENTS, BY TYPE OF DRUG THERAPY
Avg Annual Payments per Patient
950 750 550
418 411 Any Insulin Product Any Non-Insulin Antidiabetic Product 855 798 670

465

350 150

Houston 2006

Houston 2007

Texas 2007

J7: OF AND AVG PAYMENTS FOR TYPE 2 DIABETES PATIENTS USING INSULIN THERAPIES
Any Insulin Product Houston 2006 Houston 2007 Texas 2007 IntermediateActing Insulin LongActing Insulin ShortActing Insulin Mixed Insulin

of Pat Avg Costs of Pat Avg Costs of Pat Avg Costs of Pat Avg Costs of Pat Avg Costs 318 331 344 670 798 855 45 42 39 272 276 321 152 166 171 472 553 589 113
118 129 501 567 561 72 71 87 525 579 660

J8: OF AND AVG PAYMENTS FOR TYPE 2 DIABETES PATIENT USING NON-INSULIN THERAPIES
Any Non-Insulin Antidiabetic Product of Pat Houston 2006 Houston 2007 Texas 2007 842 844 835 Avg Costs 418 411 465 Biguanides of Pat 461 474 461 Avg Costs 118 94 92 Sulfonylureas of Pat 344 333 331 Avg Costs 96 81 85 Insulin Sensitizing Agents of Pat 271 203 225 Avg Costs 710 759 851

Data source: Verispan LLC 2008

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SAN ANTONIO
K1: DEMOGRAPHICS: AGE AND GENDER1
Percentage of Patients

K2: DEMOGRAPHICS: COMORBIDITIES AND COMPLICATIONS 2, 3
Percentage of Patients Texas 2007 04 44 560 302 90 COMORBIDITIES 0 1 2 2 COMPLICATIONS 0 1 2 2 2005 323 235 330 113 550 311 105 34 San Antonio 2006 366 229 312 94 563 305 103 30 2007 387 237 290 86 545 309 113 33 Texas 2007 375 236 299 90 591 283 96 30

AGE GROUP 017 1835 3664 6579 80 GENDER Male Female

2005 05 44 561 301 88

San Antonio 2006 05 46 570 318 110

2007 05 41 513 329 113

390 610

389 611

390 611

401 600

SHARE OF OLDEST PATIENTS IN SAN ANTONIO INCREASES The share of all patients diagnosed with Type 2 diabetes in the San
Antonio MSA who were 65 years of age or older rose in 2007, to 442 from 428 in 2006, higher than their counterparts statewide 392 See table K1 Of the seven Texas markets listed, this San Antonio oldest Type 2 diabetes patient share was the highest HIGH COMPLICATION PATIENT SHARE FALLS IN SAN ANTONIO Between 2006 and 2007, the share of patients diagnosed with Type 2 diabetes in San Antonio who had two or more comorbidities declined to 376 from 406 Conversely, the share of Type 2 diabetes patients in this MSA who had two or more complications from the disease increased during this period to 146 from 133, notably exceeding the statewide share 126
22

K3: HOSPITAL CHARGES PER YEAR FOR TYPE 2 DIABETES PATIENTS, COMMERCIAL INSURANCE PAYERS 4, 5 INPATIENT
Avg Annual Charges/Patient Avg Annual Charges/Patient 50,000 45,000 40,000
35,214 46,568 47,290

OUTPATIENT
6,000
4,773 5,837 4,488

EMERGENCY ROOM
Avg Annual Charges/Patient
2,000 1,500 1,000 500 0
San Antonio San Antonio Texas 2006 2007 2007 1,265 1,900 1,347

4,750 3,500 2,250 1,000

35,000 30,000
San Antonio San Antonio Texas 2006 2007 2007

San Antonio San Antonio Texas 2006 2007 2007

K4: PROFESSIONAL CHARGES PER YEAR FOR TYPE 2
DIABETES PATIENTS, COMMERCIAL INSURANCE PAYERS 5,6
Avg Annual Charges per Patient 5,200
4,326 4,590 4,662 San Antonio 2006 4,034 2,978 San Antonio 2006 Texas 2007

3,900
2,795 2,466 1,655 1,334 635 460 521 698

2,600 1,300 0
1,186 980

Hospital Inpatient

Hospital Outpatient

Ambulatory Surgery Center

Emergency Room

Office/ Clinic

1 On

Data source: Verispan LLC 2008 all pages, the percentages are representative of the universe of Type 2 diabetes patients on whom claims data have been collected in a given year 2 A complication is defined as a patient condition caused by the Type 2 diabetes of the patient These conditions are a direct result of having Type 2 diabetes Complications of Type 2 diabetes include, but are not limited to, coronary artery disease, hypoglycemia, nephropathy, neuropathy and retinopathy 3 A comorbidity is a condition a Type 2 diabetes patient may also have, which is not directly related to the diabetes Comorbidities were narrowed down to a subset of conditions which are typically present in patients with Type 2 diabetes Comorbidities of Type 2 diabetes include, but are not limited to, congestive heart failure, coronary artery disease, dysmetabolic
syndrome, hyperlipidemia, hypertension and obesity 4 Figures reflect the charges generated for Type 2 diabetes patients by the facilities that delivered care 5 Includes commercial insurance companies, Blue Cross/Blue Shield, HMOs, PPOs, point-of-service plans and exclusive provider organizations 6 Professional charges are those generated by the providers delivering care to Type 2 diabetes patients in various settings

TEXAS TYPE 2 DIABETES REPORT 2008

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SAN ANTONIO

K5: UTILIZATION: PERCENTAGE OF TYPE 2 DIABETES PATIENTS, BY SERVICE
San Antonio 2006 San Antonio 2007 Texas 2007

90
828

819 840 787 799 799 742 756 761 625 658 638 631 632 641

80 70 60 50 A1c Test Blood Glucose Test Serum Cholesterol Test
671 699 692

Urine Urine Ophthalmologic Glucose Test Microalbumin Test Examination

A1C TYPE 2 DIABETES PATIENT SHARE DROPS IN SAN ANTONIO MSA The share of San Antonio Type 2 diabetes patients who received at least one A1c test in 2007 declined, to 671 from 692 in 2006, more than two percentage points beneath the statewide average 699 K5 In 2007, the San Antonio patient share exceeded the statewide average in only one of six services
profiled: ophthalmologic examinations 658 vs 631 SAN ANTONIO MSA PER-PATIENT INSULIN PAYMENT INCREASES San Antonio per-Type 2 diabetes patient payments per year for any insulin product jumped, to 838 from 663 in 2006, yet still lagged behind the statewide average for this measure 855 The San Antonio per-Type 2 diabetes patient average payment for any non-insulin antidiabetic product also trailed the state average 435 vs 465
NOTE: A1c tests measure how much glucose has been in the blood during the past 34 months Figures reflect the percentage of Type 2 diabetes patients who have had at least one A1c test in a given year Biguanides Improve insulin sensitivity; reduce the production of glucose by the liver, decrease intestinal absorption of glucose, and increase the peripheral uptake and use of circulating glucose Sulfonylureas Stimulate the release of insulin in the pancreas Insulin Sensitizing Agents Improve response to insulin in liver, adipose tissue, and skeletal muscle, resulting in decreased production of glucose by the liver and increased peripheral uptake and use of circulating glucose

Percentage of Patients

K6: PHARMACOTHERAPY: AVERAGE ANNUAL PAYMENTS, BY TYPE OF DRUG
THERAPY
Any Insulin Product Any Non-Insulin Antidiabetic Product 838 663 855

Avg Annual Payments per Patient

900 675 450 225 0

437

435

465

San Antonio 2006

San Antonio 2007

Texas 2007

K7: OF AND AVG PAYMENTS FOR TYPE 2 DIABETES PATIENTS USING INSULIN THERAPIES
Any Insulin Product SA 2006 SA 2007 Texas 2007 IntermediateActing Insulin LongActing Insulin ShortActing Insulin Mixed Insulin

of Pat Avg Costs of Pat Avg Costs of Pat Avg Costs of Pat Avg Costs of Pat Avg Costs 323 346 344 663 838 855 45 45 39 246 302 321 158 188 171 443 577 589 111 131 129 504 553 561 88 86 87 563 664 660

K8: OF AND AVG PAYMENTS FOR TYPE 2 DIABETES PATIENT USING NON-INSULIN THERAPIES
Any Non-Insulin Antidiabetic Product of Pat SA 2006 SA 2007 Texas 2007 837 839 835 Avg Costs 437 435 465 Biguanides of Pat 462 473 461 Avg Costs 128 96 92 Sulfonylureas of Pat 365 359 331 Avg Costs 96 78 85 Insulin Sensitizing Agents of Pat 279 241 225 Avg Costs 745 802 851

Data source: Verispan LLC 2008

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MANAGED CARE DIGEST SERIES

TEXAS TYPE 2 DIABETES REPORT 2008

23

Texas Business Group on Health 11520 North Central Expy Suite 201 Dallas, TX 75243

Data Methodology
Verispan generates
data for this Managed Care Digest Series newsletter using health care professional 837p and institutional 837i insurance claims, representing more than 55 million unique patients nationally in 2007 with a range of Type 2 diabetes diagnoses 2500025092 Data from physicians of all specialties and from all hospital types are included Verispan also gathers data on prescription activity from the National Council for Prescription Drug Programs NCPDP Data for all disease states collected account for some 8 billion prescription claims annually, or more than 50 of the prescription universe These prescription data represent the sampling of prescription activity from a variety of sources, including retail chains, mass merchandisers and pharmacy benefit managers, and come from a near census of more than 59,000 pharmacies in the US Cash, mail-order, Medicaid, and third-party transactions are tracked

DATA INTEGRITY Data arriving into Verispan are put through a rigorous process to ensure that data elements match to valid references, such as product codes, ICD-9 diagnosis and CPT-4 procedure codes, and provider and facility data Claims undergo a careful de-duplication process to ensure that when
multiple, voided, or adjusted claims are assigned to a patient encounter, they are applied to the database, but only for a single, unique patient Through its patient encryption methods, Verispan creates a unique, random numerical identifier for every patient, and then strips away all patient-specific health information that is protected under the Health Insurance Portability and Accountability Act HIPAA The identifier allows Verispan to track disease-specific diagnosis and procedure activity across the various settings where patient care is provided hospital inpatient, hospital outpatient, emergency rooms, clinics, doctors offices and pharmacies, while protecting the privacy of each patient

2008 sanofi-aventis US LLC USNMH0805101

TEXAS TYPE 2 DIABETES REPORT 2008

MANAGED CARE DIGEST SERIES

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Source:dfwbgh.org

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