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:1/20/2017)... ... 2017 , ... International Protein, a company based out of Australia that focuses ... January ECRM trade show in Hilton Head, SC. , International Protein was founded ... a line of products that would elevate her fitness regime. At this ECRM trade ...
(Date:1/20/2017)... ... January 20, 2017 , ... ... sugar-free alternative VW+ 002. The drinks have been produced in collaboration with Zlatan ... perform during your workout. , After a successful launch in Sweden last year, ...
(Date:1/20/2017)... ... 20, 2017 , ... “Code Word: Chocolate Biscuit”: a biographical account following a man who went ... creation of published author, Marlyn Ivey, born in Lynn Haven, Florida and at the age ... at 19 years of age, he joined the Navy and got married right out of ...
(Date:1/20/2017)... ... ... in Suffolk”: a story of love, secrets, and mystery. “Christmas in Suffolk” is ... works in a daycare and looks for inspiration in the local coffee shop as ... Seymour’s new book is an adventure of love and secrets. , After ...
(Date:1/20/2017)... ... ... “The Land of More and More”: a brilliant story for children and adults ... and achievable answer. “The Land of More and More” is the creation of published ... Indiana where he works with the children’s ministry department. , Michael says that ...
Breaking Medicine News(10 mins):
(Date:1/19/2017)... , Jan. 19, 2017 ViewRay, Inc. ... a federal institution supporting research in Germany ... and patient treatments at the University Clinic Heidelberg as ... The MRIdian Linac program will be headed by ... also heads radiation oncology at the German Cancer Research ...
(Date:1/19/2017)... 19, 2017   Science Exchange , the leading ... that the first five replication studies from the ... published in eLife today. Despite intense scrutiny around ... practical evaluation of reproducibility rates that may identify ... other assessments of reproducibility, the results of this ...
(Date:1/19/2017)... , January 19, 2017 ... Option to Address Motor Symptoms and Motor Complications ... ...      (Logo: http://photos.prnewswire.com/prnh/20151014/276718LOGO) ... , European Neurological Review,2016;11(Suppl. 2): 2-15, http://www.touchneurology.com/articles/safinamide-new-therapeutic-option-address-motor-symptoms-and-motor-complications-mid-late ...
Breaking Medicine Technology: