Navigation Links
Drug swap drives down costs
Date:8/21/2013

Therapeutic drug substitutions have the potential to double or even triple annual cost savings compared with savings achieved with generic substitutions, according to O. Kenrik Duru and colleagues from the University of California, Los Angeles. Therapeutic drug substitutions involve the use of less expensive substitutes that are not equivalent but have a similar treatment effect as the original medication. Their work estimates the magnitude of potential savings with drug substitution in Medicare Part D plans in the US. The study appears in the Journal of General Internal Medicine, published by Springer.

Medicare Part D provides drug coverage for almost 28 million people. Beneficiaries take on average five medications and fill more than 30 prescriptions every year. Although the burden of rising out-of-pocket drug costs is likely to ease as a result of changes to Part D coverage, additional strategies to reduce drug costs, including out-of-pocket, health plan and government subsidy costs, are still very much needed.

Duru and team analyzed data for 145,056 low-income subsidy beneficiaries and 1,040,030 non-low-income subsidy beneficiaries enrolled in a large, national Part D health insurer in 2007. For each possible substitution - generic or therapeutic - the authors compared the average daily costs of the original and substitute drugs. They also calculated the potential out-of-pocket savings, health plan savings and savings for the government, if applicable.

Overall, nearly half of all beneficiaries were eligible for a generic and/or therapeutic substitution. Generic substitutions resulted in annual savings of $127 to $160 per beneficiary, whereas therapeutic substitutions had the potential to reduce annual costs by $389 to $452 per beneficiary. In other words, therapeutic drug substitutions could result in two to three times greater annual cost savings than possible generic substitutions.

The authors conclude: "While drug costs differ across health systems and vary over time, these findings indicate the importance of examining generic and therapeutic substitutions as a next step to lowering drug costs within Medicare. Since Medicare is unable to negotiate volume purchasing discounts for medication, these substitution approaches represent an alternative cost-control strategy. Ultimately, however, both physicians and patients will need to make informed decisions about the various tradeoffs associated with those substitutions."


'/>"/>

Contact: Alexander Brown
alexander.brown@springer.com
212-620-8063
Springer Science+Business Media
Source:Eurekalert

Related medicine news :

1. Mutant Kras drives pancreatic cancer maintenance via metabolic pathways
2. T-Shirt, Gift Card Giveaways Raise Blood Drives Success
3. Revenue-driven surgery drives patients home too early
4. Robotic-assisted prostate cancer surgery drives up costs, UPMC study finds
5. Access to clinical trials drives dramatic increases in survival from childhood cancer
6. Mind Wandering Drives Up Crash Rate
7. Save the Date Durand Community Blood Drives at the American Legion with the Rock River Valley Blood Center
8. National Radiology Consultants SEO-Friendly Website Designed by Web Design Company, Bayshore Solutions, Drives Visibility and Visitors
9. Avenidas Village Introduces ER INFO Flash Drives
10. Amplification of a Stat5 gene produces excess oncogenic protein that drives prostate cancer spread
11. Researchers discover master regulator that drives majority of lymphoma
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:12/9/2016)... PA (PRWEB) , ... December 09, 2016 , ... "I ... Fla. "I used this old family recipe, which is meant to relieve gout and ... it gave me a 12-hour energy boost every time. It relieved what VA doctors ...
(Date:12/9/2016)... ... December 09, 2016 , ... The Holy ... in New York, NY, on December 3rd, to benefit Holy Name Medical Center's ... annual event, which raised over $1 million - the largest event in the ...
(Date:12/8/2016)... ... December 08, 2016 , ... The Florida Hospital ... and Hyperbaric Medical Society (UHMS), the leading authority in hyperbaric medicine. This accreditation ... a few hospitals and facilities have earned this distinction. This is the second ...
(Date:12/8/2016)... ... December 08, 2016 , ... Mirixa Corporation ... adherence, and other pharmacist-delivered patient care services, has announced the promotions of Karen ... to vice president of sales. , Litsinger joined Mirixa in 2008 after ...
(Date:12/8/2016)... ... December 08, 2016 , ... SunView ... customers and employees that are both engaging and easy to use. Coming off ... the software company revealed today its plans to roll out new AI-powered self-service ...
Breaking Medicine News(10 mins):
(Date:12/9/2016)... Fla. , Dec. 9, 2016  Harmar Mobility, LLC announced ... and a member of the Board of Directors. Photo ... ... Mr. Dawson,s ... development of organizations across a variety of industries. He brings to ...
(Date:12/9/2016)... -- Research and Markets has announced the addition of ... offering. ... global travel vaccines market to grow at a CAGR of 6.83% ... scenario and the growth prospects of the global travel vaccines market ... revenue generated from the sales of various vaccines administered to actively ...
(Date:12/8/2016)... -- IRIDEX Corporation (NASDAQ: IRIX ) today announced ... stock, $0.01 par value (the "Offering" with such shares being ... terms of the Offering will depend on market and other ... no assurance as to whether or when the Offering may ... proceeds it will receive from this offering for working capital ...
Breaking Medicine Technology: