Merritt: Mail-Service Pharmacy ‘Win-Win’ Scenario For Seniors, Policymakers Seeking To Rein In Prescription Drug Costs
(Washington, DC)—With savings of an additional 10 percent compared to retail pharmacies, the mail-service pharmacy option has the potential to save Medicare as much as $86 billion dollars on prescription drug costs over the next decade, according to a new study by the Lewin Group released today by the Pharmaceutical Care Management Association (PCMA). PCMA is the national association representing America’s pharmacy benefit managers (PBMs).
While patients with short-term acute-care needs typically receive their prescriptions in the retail setting, those patients with chronic conditions such as high-blood pressure and high cholesterol could be better served by the home delivery option offered by mail-service pharmacies. The mail-service pharmacy option offers increased savings and, since medications can be automatically delivered as each fill ends, helps consumers better comply with their prescription regimen. Furthermore, mail-service pharmacies have pharmacists available over the phone 24/7 to assure consumers the ability to ask and get the answers for any questions they may have about their medication(s). Taken together, mail-service pharmacy satisfaction scores very high in terms of the condition of the drugs received, correct drugs delivered, and ease of refilling prescriptions, according to a 2004 survey of consumers in mail-service pharmacy. In 2006, Lewin estimates that the mail-service pharmacy penetration rate will be about 23.6 percent of the Medicare population.
“Mail-service pharmacy is a ‘win-win’ scenario for seniors and policymakers looking to improve Medicare and put it on a more sound fiscal footing,” said PCMA President Mark Merritt. “Some of the reasons that seniors with chronic conditions don’t yet use mail is because they are unfamiliar with it, don’t understand how it could help them, and don’t know how to access it. To the degree the mail-service pharmacy option can be more aggressively promoted and accepted, the better off seniors will be and better off the Medicare program will be.”
Among the key findings from the Lewin study:
Lewin estimates that mail-service pharmacies provide savings of 10 percent compared to retail pharmacies based on a review of the published evidence.
At its current level of market penetration, mail-service will save the health care system $78.9 billion in drug expenditures from 2006-2015. This includes $44.3 billion for Medicare and $34.6 billion for the commercial sector.
If all prescriptions that could appropriately be filled through mail-service were filled through mail-service, Lewin estimates that drug expenditures would be reduced by an additional $99 billion from 2006-2015. This includes $42.2 billion for Medicare and $56.8 billion for the commercial sector.
The cumulative savings that mail-service pharmacies could provide the health system during the next ten years amounts to $177.9 billion, based on existing and potential mail-service market penetration.
The complete Lewin study, “Mail-Service Pharmacy Savings: A Ten-Year Outlook for Public and Private Healthcare Purchasers,” is available on PCMA’s website Lewin Study
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The Pharmaceutical Care Management Association (PCMA) is the national trade association representing America’s pharmaceutical benefit managers (PBMs). PCMA member companies provide pharmaceutical care management services to more than 200 million Americans.
Contact Information:
Phil Blando
202-207-3614