Previously Uninsured Seniors Saving on Average 60 Percent on Medicines

(Washington, DC)—A key benchmark of plan performance—the use of generic medications—is higher in Medicare Part D than in the rest of the marketplace, according to a new report from IMS Health, a global pharmaceutical and healthcare consulting firm. Part D plans have also helped previously uninsured seniors to reduce their out-of-pocket costs by 60 percent per prescription according to IMS, said the Pharmaceutical Care Management Association (PCMA) today.

The new IMS report—Medicare Part D: The First Year—examines the impact of Part D on medication use among seniors. Specifically, IMS finds:

• Generic drugs comprise 58 percent of prescriptions in Part D, compared to 57 percent of all retail prescriptions;
• In Part D, patient compliance with therapies for chronic conditions increased in 4 out of 5 therapeutic categories;
• Previously uninsured seniors in Part D increased their use of all medications—including both generics and brands—by 26 percent while their out-of-pocket costs per prescription decreased by 60 percent;
• Seniors switching from third-party coverage to Part D increased their prescription use by 10 percent, while their out-of-pocket drug costs decreased by 17 percent; and
• Only 6 percent of enrollees entered the donut hole, and a sizable portion of those enrollees did so in the final days of the year.

“PBMs have played a key role in increasing generic utilization in Part D,” said PCMA President Mark Merritt. “This new report is further evidence that Part D plans and the PBMs who administer them are reducing costs and increasing access for America’s seniors and the disabled.”

In addition to the most recent data from IMS, a study earlier this year from PricewaterhouseCoopers (PwC) found that proven pharmacy benefit management tools in Part D are estimated to save beneficiaries $693 billion over the 2008 to 2017 period, including $43 billion in reduced prescription drug costs in 2008 alone.

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Contact Information:
Charles Coté 202-207-3605