Navigation Links
New Study: Medicare Preferred Pharmacy Network Plans Offer Lower Average Premiums, Same Quality as Non-Preferred Network Plans
Date:12/9/2013

WASHINGTON, Dec. 9, 2013 /PRNewswire-USNewswire/ -- Medicare prescription drug plans (PDPs) using preferred pharmacy networks have lower average premiums and the same or better average quality ratings as plans without preferred networks, according to a new analysis by Avalere Health released today by the Pharmaceutical Care Management Association (PCMA). The analysis is the first to examine 2014 premiums and star ratings for PDPs with preferred pharmacy networks, which now account for around 70% of Part D enrollment.

"Preferred pharmacy plans can offer Medicare beneficiaries the same quality at less than half the premium of plans without preferred networks," says PCMA President and CEO Mark Merritt.

Click here to read the new analysis.

Avalere analyzed recently released CMS data on 2014 premiums and star ratings for Medicare PDPs. Key findings include:

  • Premiums: On average, PDPs with preferred pharmacy networks have lower premiums than PDPs without preferred networks.
    • For basic PDPs, the average monthly premium for plans with preferred networks is $29.83, 17% less than for plans without preferred networks.
    • For enhanced PDPs, the average monthly premium for plans with preferred networks is $49.15, 57% less than for plans without preferred networks.
    • For all PDPs offered in 2014, the top seven plans with the lowest average monthly premium all use preferred pharmacy networks.
  • Quality (Star Ratings): On average, PDPs with preferred pharmacy networks have similar star ratings compared to PDPs without preferred networks.
    • Basic PDPs with preferred networks have an average star rating of 3.3, compared to 3.0 stars for basic plans without preferred networks.
    • Enhanced PDPs with preferred networks have an average star rating of 3.5, the same as enhanced PDPs without preferred networks.

The Avalere analysis adds to a growing body of evidence demonstrating the value of preferred pharmacy networks for the Medicare program and its beneficiaries.

A recent study by Milliman estimated that preferred pharmacy network plans will reduce federal Medicare spending by $7.9 to $9.3 billion over the next 10 years. Milliman found that the largest two-year decrease in federal direct subsidies in the history of the Part D program has coincided with the rapid adoption of preferred pharmacy network plans and the increased use of generic drugs.

Separately, Part D seniors in plans with preferred pharmacy networks are overwhelmingly satisfied, citing lower costs, convenient access to pharmacies and other benefits, according to a survey from Hart Research Associates.  The survey found that 85 percent of seniors surveyed are satisfied with their preferred network plan.  In addition, the survey found that four in five seniors would be disappointed if their preferred network plan is eliminated.

Currently there are more drugstores in the U.S. than McDonald's, Burger Kings, Pizza Huts, Wendy's, Taco Bells, Kentucky Fried Chickens, Domino's Pizzas, and Dunkin' Donuts combined, creating a highly competitive environment.

PCMA represents the nation's pharmacy benefit managers (PBMs), which improve affordability and quality of care through the use of electronic prescribing (e-prescribing), generic alternatives, mail-service pharmacies, and other innovative tools for 216 million Americans.

Follow PCMA on Twitter


'/>"/>
SOURCE Pharmaceutical Care Management Association
Copyright©2012 PR Newswire.
All rights reserved

Related medicine technology :

1. NPC, UMD Study: Factors That Cause Different Treatment Responses Are Not Well Understood or Studied
2. National Study: Teen Misuse and Abuse of Prescription Drugs Up 33 Percent Since 2008, Stimulants Contributing to Sustained Rx Epidemic[1]
3. Study: Surefire Medicals Technology Improves Delivery Of Embolics In Cancer Treatment
4. Prostate Cancer Study: Most Patients Report Satisfaction After Robotic Surgery
5. WebMD Study: U.S. Doctors Deeply Divided on Many Matters of Ethical Ambiguity
6. Clinical Study: Dietary Supplement SagaPro Reduces Frequent Urination
7. Inaugural Harris Poll Physician Pulse(SM) Study: Viagra® and Cialis® are Highest Ranked in Trust
8. National Study: Teen "Heavy" Marijuana Use Up 80 Percent Since 2008, One in Ten Teens Reports Using Marijuana at Least 20 Times a Month
9. Medicare Analysis Finds Mail Order Pharmacies Often More Expensive than Community Pharmacies
10. SI-BONE Minimally Invasive Sacroiliac Joint Fusion Could Save Medicare an Estimated $660 Million
11. RealTime Medicare Data Helps Propel Reluctant Change in Healthcare:
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/23/2016)... LOS ANGELES , June 23, 2016 /PRNewswire/ ... (NASDAQ: CAPR ), a biotechnology company ... first-in-class therapeutics, today announced that patient enrollment in ... progrEssion in Duchenne) has exceeded 50% of its ... its enrollment in the third quarter of 2016, ...
(Date:6/23/2016)... PARK RIDGE, Ill. and INDIANAPOLIS ... caliber of students receiving a Lilly Diabetes Tomorrow,s Leaders ... hands. The 2016 scholarship winners, announced today online at ... refused to let type 1 diabetes stand in the ... Lilly Diabetes has supported the Foundation,s scholarship program since ...
(Date:6/23/2016)... Pa. , June 23, 2016 The ... in an outpatient dialysis facility.  Treatments are usually 3 ... 6 hours per visit, including travel time, equipment preparation ... a patient, but especially grueling for patients who are ... of a skilled nursing and rehabilitation centers for some ...
Breaking Medicine Technology:
(Date:6/24/2016)... ... 2016 , ... Today, InhaleLabs.com (Inhale) offilially launched its site, which ... users with high quality water pipes within an ideal price range. The site is ... founded by two brothers, Nick and Mike Hunter, who use medical cannabis to heal ...
(Date:6/24/2016)... , ... June 24, 2016 , ... Dr. Seema Daulat, ... Evans Dermatology in the South Lamar location as of July 13, 2016. , Dr. ... School. As a medical student, she regularly volunteered at the Agape Clinic serving Dallas’ ...
(Date:6/23/2016)... , ... June 23, 2016 , ... An article ... expose a possible link between head and neck cancer in individuals with unhealthy oral ... study were evaluated based on whether they had gum disease, brushed their teeth on ...
(Date:6/23/2016)... ... June 23, 2016 , ... The Mechille Wilson Agency, a Texas-based insurance company ... the surrounding region, is initiating a charity drive to assist a student to be ... a scholarship fund that will be presented to the chosen student to help with ...
(Date:6/23/2016)... ... ... Virginia Beach resident Sean Kelly suffered from depression after a long military career ... set out to accomplish a personal mission: a solo 50-mile paddle. Kelly decided to ... the story of another special operations veteran, Josh Collins, whom Kelly had served with ...
Breaking Medicine News(10 mins):