October 28, 2013
Major Findings from the new Milliman analysis include:
- 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.