Billions can be saved with pharmacy benefit management

May 29, 2013
Billions can be saved with pharmacy benefit management
Efficient pharmacy benefit management, including increasing use of generic drugs and negotiation of market-based pharmacy dispensing fees, could save Medicaid programs billions of dollars nationwide in the next 10 years, according to a report prepared by the Menges Group and sponsored by the Pharmaceutical Care Management Association.

(HealthDay)—Efficient pharmacy benefit management, including increasing use of generic drugs and negotiation of market-based pharmacy dispensing fees, could save Medicaid programs billions of dollars nationwide in the next 10 years, according to a report prepared by the Menges Group and sponsored by the Pharmaceutical Care Management Association.

Researchers from the Menges Group utilized Centers for & Medicaid Services data on Medicaid fee-for-service pharmacy usage and costs for calendar year 2011. Savings estimates were derived for each state across the period 2014 to 2023.

According to the report, state Medicaid programs could save a total of $74.4 billion across 2014 to 2023 by optimizing pharmacy benefit management tools and strategies. This includes $43 billion in federal savings and $31.4 billion in state savings. Savings strategies include increasing use of ($23.5 billion); negotiating market-based pharmacy dispensing fees ($12.5 billion); using limited pharmacy networks ($33.4 billion); encouraging use of more affordable, preferred brands ($2.7 billion); and reducing drug diversion, polypharmacy, fraud, and waste ($2.3 billion).

"The easiest way for Connecticut to reduce costs in is to stop overpaying drugstores and start using cutting edge marketplace tools," Mark Merritt, president and chief executive officer of the Pharmaceutical Care Management Association, said in a statement.

Explore further: Savings help the medicine go down

More information: More Information

Related Stories

Savings help the medicine go down

June 25, 2008

[B]Prescription drug coverage for low income seniors reduces Medicaid[/B] A new study of state-subsidized pharmacy assistance programs showed that providing prescription drug coverage for low-income seniors reduces Medicaid ...

Public Citizen: State drug fraud cases on the rise

September 27, 2012

(AP)—A consumer advocacy group is reporting that pharmaceutical companies have paid more than $30 billion to state and federal governments to settle allegations of fraud over the last 20 years.

AAP updates medicaid policy statement with ACA changes

April 1, 2013

(HealthDay)—The implications of the expansion of Medicaid resulting from implementation of the Affordable Care Act (ACA) on children are discussed in a policy statement from the American Academy of Pediatrics (AAP) published ...

Recommended for you

Bacteria in smokeless tobacco products may be a health concern

August 26, 2016

Several species of bacteria found in smokeless tobacco products have been associated with opportunistic infections, according to a paper published August 26 in Applied and Environmental Microbiology, a journal of the American ...

Is tailgating toxic?

August 26, 2016

While tailgating this football season you may want to take a step back from the grill and generator—for your health.

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.