OR WAIT 15 SECS
How over-the-counter meds keep patients healthier.
The availability of over-the-counter (OTC) medicines saves the U.S. healthcare system a total of $146 billion annually, according to a new study.
Specifically, cost savings due to the availability of OTC medicine came from two major categories: nearly $52 billion in drug cost savings (lower-priced OTCs versus prescription drugs) and nearly $95 billion in cost savings due to avoidance of clinical visits, according to the results of a study released by the Consumer Healthcare Products Association (CHPA).
The study examined the value created by OTC medicines to the U.S. healthcare system. The study determined the value of OTC medicines examining nine major therapeutic categories of OTC medicines, comparing cost relative to alternatives, such as prescription drugs and clinical visits. It also determined the value of OTC medicines by estimated cost savings across insurance segments (i.e., commercial plans, Medicare, Medicaid, cash) and by OTC category.
The researchers examined nine categories of the most common self-treatable conditions representing the majority of OTC medicine purchases:
“OTC medicines are a cornerstone of the U.S. healthcare system,” according to David Spangler, senior vice president, policy, and general counsel at CHPA. “Without OTC medicines, 90% of consumers would seek professional medical treatment for minor ailments, causing an unnecessary burden on the healthcare system.”
In addition, the study found:
Across the four categories of insurance segments within the healthcare system nearly half of the $146 billion in value was generated within the commercial market. Approximately $73.6 billion, or 50.3% of total savings, were captured by commercial plans, according to the study.
“This is particularly relevant to commercial plans and cash-based payments from high-deductible plans, as those segments gain greater value per patient compared to government-sponsored plans,” Spangler says.
While every dollar spent on OTCs yielded overall savings of $7.20, some therapeutic categories provided significantly greater savings, according to the study. For example, each medicated skin dollar provided $19 in savings, and each antifungal dollar provided over $11 in savings.
“The bottom line is that when consumers use OTC medicines to treat or relieve symptoms, they feel better and can be more productive,” Spangler says.