Payer Savings Calculator

The following savings calculator is designed to represent a conservative real-world savings scenario that only takes into consideration the direct savings that can be identified and measured.

Payer Savings Calculator

The following savings calculator is designed to represent a conservative real-world savings scenario that only takes into consideration the direct savings that can be identified and measured.

Additional Savings Outside the Calculation Include:

  • Costs for follow-up physician visits for medications that don’t work
  • Costs for additional medications that are prescribed because of trial-and-error prescribing
  • Costs associated to prescribing expensive medications when a cheaper one would work
  • Liability issues directly tied to improper notification or prescribing
  • The savings incurred from being able to purchase a more advanced PGx test for a fraction of the cost of past and current reimbursements
  • Associated savings from providing real-time patient specific healthcare
  • Information which directly increases the overall quality of health of your patient population

Step #1 Population Information

Total Payer Population

Just enter the number of people in entire group in this field.

%

Percent of Penetration/PGx Tested:

Enter the target % of patients you plan to initially test. Most companies start with their chronic care management CCM patients who represent the highest overall healthcare costs with an average of 42Rx’s per year.

Step #2 Suboptimal Prescriptions

$

Average Cost Per Prescription:

This is the average cost per prescription, the government averages this amount to be $75.00.

Number of Suboptimal Prescriptions per Person per Year:

Enter the number of prescriptions written per year to patients that do not work and require additional treatment. The government estimates that an average as high as 45% of all prescriptions are suboptimal because of empiric prescribing and require the patient to have additional medical treatment. This number could be as high as 18% per year per CCM patient.

%

Percent of Critical Adverse Drug Hospital Events:

Enter the percent of the total population that have been PGx tested who avoided a critical event caused by a medication because of Pharmazam’s real-time patient specific reporting. Note: Pharmazam also immediately reports and notifies parties of potential critical ADRs prior to an event happening for people who have not had the PGx test, however genetic issues are not identified on those events (but those numbers are not taken into consideration in this scenario).

$

Average Cost of Hospital Stay for Adverse Drug Event:

Enter a number that represents the average overall cost of an adverse drug event and includes hospital stays, additional ongoing treatment, additional medication expenses, as well as averaging in events that cause serious illness or death.

Step #3 Population Testing

%

Yearly Adoption Rate:

Enter the amount of additional people in your group that will receive the PGx test each year.

$

Pharmazam Test Cost:

This is the one-time test cost for the Pharmazam full panel PGx test. Our test is the most comprehensive proprietary test available on the market and tests more genes for more medications including OTC meds.

Minimum Gross Savings:
Test Cost:
Net Savings:
Year 1 Savings:
4,000,000
2,990,000
1,010,000
Year 2 Savings:
8,000,000
2,990,000
1,010,000
Year 3 Savings:
12,000,000
2,990,000
5,010,000
Year 4 Savings:
16,000,000
2,990,000
9,010,000
Year 5 Savings:
20,000,000
2,990,000
13,010,000
Year 6 Savings:
24,000,000
2,990,000
17,010,000
Year 7 Savings:
28,000,000
2,990,000
21,010,000
Year 8 Savings:
32,000,000
2,990,000
25,010,000
Year 9 Savings:
36,000,000
2,990,000
29,010,000
Year 10 Savings:
40,000,000
2,990,000
33,010,000
Year 11 Savings:
40,000,000
2,990,000
37,010,000