Milliman: The Impact of Preferred Pharmacy Networks on Federal Medicare Part D Costs, 2014-2023

Major Findings from the new Milliman analysis include:

(Click here to view the complete report)

  • Preferred pharmacy network plans are estimated to reduce federal Medicare spending by approximately $870 million in 2014.
  • Over the next ten years, preferred pharmacy network plans are estimated to reduce federal Medicare spending by $7.9 to $9.3 billion.
  • The largest two-year decrease in federal direct subsidies in the history of the Medicare Part D program has coincided with the rapid adoption of preferred pharmacy network plans and the increased use of generic drugs.
  • Post-POS price concessions cause a greater reduction in the federal Medicare spending than equivalent drug discounts reflected at POS.

^ BACK TO TOP

Tweet

© 2010 Pharmaceutical Care Management Association. All rights reserved.