Generic drugs ‘wildly overpriced’ in Medicare, study finds
Becker’s Hospital Review
–Many generic drugs in Medicare Part D are “wildly overpriced,” according to an analysis from drug pricing research firm 46brooklyn.
The report, which examined data from CMS’ Prescription Drug Plan Formulary, Pharmacy Network, and Pricing Information Files, found that while some generic drugs are priced fairly, others “show unbelievable pricing variations across Part D plans.”
Three things to know:
1. Researchers found in the first quarter of 2019, for example, that Medicare Part D sponsors priced generic mental disorder drug aripiprazole — brand name Abilify — anywhere from less than $0.30 per pill to more than $22 per pill.
2. In addition to being overpriced, many generic drugs are “over-tiered,” the researchers found. This means generic drugs that are usually less expensive are being assigned higher, often arbitrary prices. They are then placed in tiers used for more expensive drugs. This results in beneficiaries paying more out of pocket to access the drugs.
3. According to the analysis, pricing did not vary much among brand-name drugs, which was not surprising to the researchers. Still, some of the charts they created show “cliffs” that may indicate plans are pricing brand drugs lower than list price.
To read the full report, click here.
Recent Posts
-
Senior Care Pharmacy Coalition Shares Comments with CMS Regarding Medicare Part D Restructuring Guidance: “Smoothing Provisions”
SCPC filed comments with CMS in response to their guidance on the implementation of the Medicare Part D restructuring portion of the Inflation Reduction Act (IRA).
-
Drug pricing efforts threaten ‘very existence’ of LTC pharmacies: reps
President Biden in his State of the Union address last week vowed to end “Big Pharma’s” grip on prescription drug pricing and cut costs for seniors and taxpayers by another $200 million.
But the president’s plans to expand his administration’s first-ever Medicare drug price negotiations could spell big trouble for the pharmacists who support seniors living in long-term care settings, advocates warned in response. -
President Biden Announces Desire to Cap Drug Prices for All Americans
In the State of the Union Address on March 7th, President Joseph Biden announced a proposal to expand the number of drugs targeted for annual price negotiations by Medicare and lower prescription drug costs for American families.
Stay in the Know
Get the latest news and updates on issues impacting the long-term pharmacy community.