Q&A: Health plan executives discuss high drug prices
What managed care executives should know about rising drug prices, how they impact the healthcare system, and advice on what to do about it.
John Bennett, MD, president and chief executive officer,
MHE: What should be on the radar screens of managed care execs when it comes to the high-cost of drugs?
Bennett, MDBennett: In addition to the rising cost of specialty pharmaceuticals, like those used to treat hepatitis C and high cholesterol, managed care executives should also pay close attention to the ever-rising cost of generic medications, particularly those used to treat diabetes.
Related:
Richards: The rapid pace at which drugs are increasing in price is an issue for all of us. Executives should be aware of the volatility of drug price increases and have mechanisms in place to monitor these changes. Many of the drugs experiencing high cost increases have alternatives in the market. For example Glumetza, a branded for of metformin to treat type 2 diabetes, increased in price from $14.84 for one tablet to $133.59 per tablet over a 60-day period of time this past June and July. This is an increase of over 800%, when you can buy a month’s supply of generic metformin for $5.
MHE: How do high drug prices impact insurers and the overall healthcare system?â¨
Bennett: As drug costs continue to rise-and consume a greater percentage of the healthcare dollar-insurers are left with no choice but to pass these costs onto consumers. This often occurs in the form of higher premiums, higher cost-shares, and a reduction in benefits.
Richards:
RichardsThe high cost of medications is raising the price we all pay for healthcare. For example, pharmacy costs are accounting for an increasing portion of the healthcare dollar. For SelectHealth commercial business pharmacy was 13% of total medical expense in 2012. In 2015, pharmacy costs were 17% of total medical costs, a 31% increase.
The rising costs of medication are the single biggest contributors to medical expense trend.
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