Showing posts with label PBM. Show all posts
Showing posts with label PBM. Show all posts

Friday, March 09, 2007

AARP Rx Watchdog Report; brand-name drug prices exceed inflation once again

As expected, price increases for brand-name drugs commonly used by older Americans exceeded the rate of inflation. Yet the key driver of increased drugs costs remain the introduction and utilization of new brand-name drugs. Americans (young or old) that wish to get the best value from their drug dollar need to look for generic alternatives. Nearly every major drug category has generic versions of different brand-name drugs that provide similar, if not equal or better, value than the brand-name drugs with no generic versions. For example, patients could ask their doctor about using generic versions of :
  • Mevacor, Pravachol or Zocor instead of Lipitor
  • Prilosec (or even Prilosec OTC) instead of Prevacid, Aciphex, or Protonix
  • Prozac, Paxil or Zoloft for a variety of brand-name antidepressants

This is only a small sample of the generic alternatives that can truly help increase the value of drug therapy. Ask your doctor or pharmacist for recommendations. Your health plan or prescription drug plan also may provide lists of recommended alternatives.


"During the 12-months ending September 2006, the prices manufacturers charge wholesalers and other direct purchasers for 193 brand-name drugs widely used by older Americans continued to rise much faster than the general inflation rate. The manufacturer’s price increase for brand-name drugs, on average, was 6.2 percent—more than one-and-ahalf times the inflation rate of 3.7 percent. During the same 12-month period, the wholesale list prices set by manufacturers for 75 generic drugs widely used by older Americans decreased, on average, by 0.7 percent. "

Wednesday, November 29, 2006

Free generics from doctor's offices give N.C. Pharmacy Board heartburn

Doctors frequently give out free samples of brand name drugs without a special license, so why not generics? The kiosks also help maintain much better records than notes in the chart. However, the 30 day supplies bypass pharmacist review and may hinder efforts to improve quality through better computerized clinical review. Keep in mind that the costs associated with drug therapy problems may cost more than the drugs themselves.

http://www.ronlyon.com

News & Observer, The (Raleigh, NC) (November 28, 2006)

Nov. 28--North Carolina's largest health insurer has gotten on the wrong side of state regulators.

The N.C. Board of Pharmacy has told Blue Cross and Blue Shield of North Carolina that it is concerned about the insurer's latest effort to get cheaper, generic drugs to patients: computerized kiosks that allow doctors to dispense free, 30-day samples.

Blue Cross has contracted with a San Diego company, MedVantx, to set up, stock and maintain the kiosks statewide. Six Triangle physicians already have them. But Blue Cross and MedVantx fell short of fully explaining the program to the pharmacy board, said Jay Campbell, executive director of the regulatory body. The board makes sure prescription drugs are dispensed without putting public health and safety at risk.

"There may not be any problem," Campbell said. "But finding out details [about the program] in the newspaper is not the way I like to do my job. I need to know what the heck they're doing."

A lawyer and pharmacist, Campbell advises the six-member board on legal issues and sets the board's agenda. He has asked Blue Cross and MedVantx to answer questions at the board's next meeting on Jan. 16.

Campbell said the board is concerned about regulatory oversight and the sample size being given to patients.

Can a 30-day supply be called a sample, Campbell asked. Prescription drug samples are usually for a three-day supply.

He also questioned whether program participants lack state licenses. North Carolina requires a license to dispense drugs. Pharmacists make sure that patients taking multiple medications aren't running the risk of dangerous drug interactions. Campbell said it's unclear who takes on that responsibility under the Blue Cross program.

Blue Cross and MedVantx representatives will provide regulators with the requested information at the January meeting, Blue Cross spokesman Lew Borman said. But Borman denied that the partners tried to sidestep regulators.

Borman said participating doctors are neither charged nor paid for using the kiosk. The free samples can be given to any patient, regardless of health insurance. Both Blue Cross and MedVantx argue that because physicians aren't compensated for the drugs, the physicians don't have to register for a dispensing license.

Blue Cross said it pays MedVantx a fee for each time a kiosk dispenses a sample. The insurer has declined to release the amount of the fee but says it will be less than the amount the insurer pays for brand-name drugs. Blue Cross projects savings of about $300 per sample.

When Blue Cross introduced the program last week, Borman said MedVantx had met with the pharmacy board before installing the first kiosk, and no concerns came up.

"That is not true," Campbell told board members in an e-mail message sent Nov. 22, the day The News & Observer reported Blue Cross and Blue Shield's plans.

Campbell remembered talking with a MedVantx representative. But "the rep did not explain the context of the question, much less describe the full scope of the program they were contemplating," Campbell's e-mail read.

Susan Hogue, MedVantx's director of account management, said she met with Campbell July 21 and presented information about the sampling program.

"We're really not trying to stimulate ill will," Hogue said. "Our goal is to work this out."

Wednesday, November 01, 2006

First Databank AWP Litigation Impact

While the press releases and court documents suggest a 4% savings to clients as a result of this successful settlement. The following factors may impact that estimate:

We evaluated the impact in 2002 using AWP, WAC & adjudicated prices weighted by our actual utilization. For brand drugs:

  • AWP increased by 7.4%
  • WAC increased by 5.3%
  • AWP/WAC increased from 13.6% to 15.9%, a total of 2.3%

Other factors that should impact this 4% savings include:

  • Since 2001, the utilization of generics have increased dramatically (e.g., 10%) which will lower the overall impact of any price changes.
  • PBMs and pharmacies routinely include clauses that let them modify pricing in the event of government or legal action that impacts prices .
  • PBMs and pharmacies could easily modify their maximum allowable cost (MAC) list to increase prices on generics.

This situation may lead to pricing indexed on average manufacturer price AMP and average selling price (ASP).