Monitoring Trends after Adoption of Kentucky’s Drug Formulary

By Vennela Thumula, Te-Chun Liu

March 30, 2023 Related Topics: Drug Formularies, Physician Dispensing, Rx Drugs and Opioids

This report is a part of a series of studies that examine the impact of drug formularies in five states (Arkansas, California, Indiana, Kentucky, and New York) that implemented formularies in 2018 and 2019. As of January 1, 2023, 17 states have adopted drug formularies, with several other states considering implementation. Findings from this study should therefore be of interest to stakeholders in Kentucky as well as those in other states considering the implementation of drug formularies in their jurisdictions. 

In this study, we examine the impact of the implementation of the Kentucky workers’ compensation formulary on prescription drug utilization and costs, using detailed transaction data for prescriptions filled between January 1, 2016, and March 31, 2021, by workers within 12 months of injury. The Kentucky formulary went into effect for new prescriptions on July 1, 2019, and for certain refill prescriptions on January 1, 2020.  

Monitoring Trends after Adoption of Kentucky’s Drug Formulary. Vennela Thumula and Te-Chun Liu. March 2023. WC-23-24.

Copyright: WCRI

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Research Questions:

  • Did the formulary reduce overall prescription utilization?
  • What was the impact on drugs with different status under the Kentucky workers’ compensation formulary—“N” drugs, “Y” drugs, and unlisted?
  • What was the impact on various drug groups—opioids, nonsteroidal anti-inflammatory drugs (NSAIDs), dermatological agents, musculoskeletal therapy agents, anticonvulsants, compounds, and others? 
  • Did the formulary reduce prescription payments per claim?

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