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PharmacoEconomics & Outcomes News

, Volume 821, Issue 1, pp 29–29 | Cite as

Shift to Medicare Part D may reduce total drug expenditure

Clinical study

A proposal by the US Department of Health and Human Services (HHS) to shift coverage of certain drugs from Medicare Part B to Medicare Part D (private prescription drug plans) may reduce total drug expenditure, but may increase out-of-pocket (OOP) costs for some beneficiaries, according to findings of a study published in JAMA Internal Medicine.1

This study investigated total Medicare drug spending on 75 brand-name drugs accounting for the highest Part B expenditure in fee-for-service Medicare beneficiaries in 2016, and estimated total drug spending if these drugs were switched to Medicare Part D, and compared annual OOP costs under Part B versus Part D. It also investigated the proportion of drugs in Part D protected drug classes.

Estimated total annual Medicare Part B spending for the 75 brand-name drugs with the highest expenditure was $21.6 billion [2018 US dollars] per year. It was estimated that if these drugs were switched to Medicare Part D, total spending on these drugs would...

References

  1. 1.
    Hwang TJ, et al. Analysis of Proposed Medicare Part B to Part D Shift With Associated Changes in Total Spending and Patient Cost-Sharing for Prescription Drugs. JAMA Internal Medicine : 14 Jan 2019. Available from: URL: http://doi.org/10.1001/jamainternmed.2018.6417
  2. 2.
    Venker B, et al. Assessment of Spending in Medicare Part D If Medication Prices From the Department of Veterans Affairs Were Used. JAMA Internal Medicine : 14 Jan 2019. Available from: URL: http://doi.org/10.1001/jamainternmed.2018.5874
  3. 3.
    Crosson FJ, et al. Managing the Cost of Medicare Part B Drugs: Implications for the Program and Beneficiaries. JAMA Internal Medicine : 14 Jan 2019. Available from: URL: http://doi.org/10.1001/jamainternmed.2018.6146

Copyright information

© Springer Nature Switzerland AG 2019

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