A budget impact analysis of the dario diabetes solution for type 2 diabetes mellitus in a US managed care population

Abstract

Aims: To estimate the potential budget impact following adoption of the Dario Diabetes Solution (DDS), a combined all-in-one smart glucose monitor with cloud-based app integration, in combination with standard of care (SoC) for patients with type 2 diabetes mellitus (T2D) versus SoC alone.

Methods: Applying the findings of the retrospective cohort from real world data (RWD) studies of T2D patients' clinical outcomes and healthcare r251esource utilization (HCRU), a population-based budget impact model was developed. Budget impact was estimated with disaggregated costs calculated in categories, including medication, inpatient (IP) and emergency room (ER), office visit, and all-cause total costs. One way sensitivity analysis (OWSA) was conducted to quantify the uncertainty in the model input parameters. Eight unique scenarios were analyzed, including the Medicare perspective, a two-year time horizon, and glycemic control.

Results: Analysis of the base case (1-year, commercial perspective, inclusion of device, application, and costs pertaining to consumable, medication, and health care resource utilization) resulted in net cost savings of $9,652,498 in a plan population of 1 million. Net budget impact for scenarios ranged from savings of $39,216,721, for the Medicare-only perspective instead of commercial, to $251,554 when restricting the population to patients who moved from poor-to-good glycemic control (HbA1C ≥ 8% mg/dl to < 8%).

Conclusions: Despite cost estimation using remittance data and a relatively short time horizon (one year), our budget impact analysis demonstrated substantial cost savings with the introduction of DDS, driven by reduced HCRU for patients using DDS, who displayed improved adherence and glycemic control.

Keywords: Dario Diabetes Solution; I10; I11; I18; T2D; budget impact model; digital health solution; sensitivity analysis.