Navigation Links
Drug swap drives down costs

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
Springer Science+Business Media

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:
(Date:11/30/2015)... ... ... Bayco Products, Inc today announced the introduction of three Nightstick® brand LED traffic wands with ... colors; red ( NSP-1632 ), yellow ( NSP-1634 ) and blue ( NSP-1636 ), the ... or 27 hours in blinking strobe mode using a fresh set of 3 AAA cells ...
(Date:11/29/2015)... Metamora, Michigan (PRWEB) , ... ... ... is once again accredited by the American Institute of Ultrasound in Medicine! ... allows practices to demonstrate that they meet or exceed nationally recognized standards ...
(Date:11/29/2015)... ... November 29, 2015 , ... NewsWatch featured X-wing as ... available to consumers. Amanda Forstrom, a technology expert and special reporter for NewsWatch, conducted ... reality in the future. , It’s the future because flying cars are about to ...
(Date:11/29/2015)... , ... November 29, 2015 , ... Doctors who missed ... colleagues to recognize the signs of mesothelioma and push for a diagnosis, especially in ... its website. Click here to read it now. , Researchers at ...
(Date:11/29/2015)... ... November 29, 2015 , ... Key Housing, a top-rated ... announce their December, 2015, featured apartment community: Epic. In showcasing this featured apartment community ... the tight Bay Area rental market to efficiently find housing suitable to their needs ...
Breaking Medicine News(10 mins):
(Date:11/29/2015)... Iowa , Nov. 29, 2015 ... ultrasound guidance technology at the Radiological Society of ... in Chicago November 29 ... system is designed to offer customers unrivaled versatility, ... --> ...
(Date:11/27/2015)... 27, 2015 Ein neuer ... Krebs.   --> Ein neuer Kombinationsansatz ...   --> Ein neuer Kombinationsansatz ...   Clinical Cancer Research vom ... Cancer Research vom 6. November 2015 berichtet. ...
(Date:11/26/2015)... PUNE, India , November ... --> ... / personal emergency response system ... grow steadily for 5 years ... growing region expected to see ...
Breaking Medicine Technology: