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U.S. drug prices hit by insurer tactic against copay assistance: analysis
Source: Reuters
HEALTH NEWS JUNE 5, 2018 / 8:10 PM / UPDATED 11 HOURS AGO
U.S. drug prices hit by insurer tactic against copay assistance: analysis
Michael Erman, Caroline Humer
4 MIN READ
NEW YORK (Reuters) - A recently adopted tactic by U.S. health plans to limit the financial assistance drugmakers provide directly to consumers for prescription medicines is taking a toll on drug prices, according to a new analysis released on Tuesday.
-snip-
As the cost of medications reaches new heights in the United States, drugmakers have increasingly offered so-called ‘copay assistance’ cards, similar to a debit card, that consumers can use at the pharmacy counter to reduce their out-of-pocket costs.
But pharmacy benefits managers such as Express Scripts Holding Co and CVS Health say these payments insulate consumers from the real costs of their drugs and can push them toward more expensive medications when a cheaper option is available.
“Copay card programs can lead to increased healthcare costs in the system by encouraging the use of higher cost, often branded drugs,” CVS said in a statement.
Beginning in January, Express and other pharmacy benefits managers introduced a new ‘copay accumulator’ approach, refusing to allow copay assistance payments to contribute toward a patient’s deductible before insurance kicks in. Evans said that around 17 percent of health plans with 5,000 or more employees are currently using a copay accumulator.
-snip-
U.S. drug prices hit by insurer tactic against copay assistance: analysis
Michael Erman, Caroline Humer
4 MIN READ
NEW YORK (Reuters) - A recently adopted tactic by U.S. health plans to limit the financial assistance drugmakers provide directly to consumers for prescription medicines is taking a toll on drug prices, according to a new analysis released on Tuesday.
-snip-
As the cost of medications reaches new heights in the United States, drugmakers have increasingly offered so-called ‘copay assistance’ cards, similar to a debit card, that consumers can use at the pharmacy counter to reduce their out-of-pocket costs.
But pharmacy benefits managers such as Express Scripts Holding Co and CVS Health say these payments insulate consumers from the real costs of their drugs and can push them toward more expensive medications when a cheaper option is available.
“Copay card programs can lead to increased healthcare costs in the system by encouraging the use of higher cost, often branded drugs,” CVS said in a statement.
Beginning in January, Express and other pharmacy benefits managers introduced a new ‘copay accumulator’ approach, refusing to allow copay assistance payments to contribute toward a patient’s deductible before insurance kicks in. Evans said that around 17 percent of health plans with 5,000 or more employees are currently using a copay accumulator.
-snip-
Read more: https://www.reuters.com/article/us-usa-healthcare-drugpricing/u-s-drug-prices-hit-by-insurer-tactic-against-copay-assistance-analysis-idUSKCN1J2005
