As Costs of Drugs Shift to Consumers, Spending Drops

As pay for performance expands, this is not necessarily good news either as this seems to be one of the top reasons for patient non-compliance with treatment plans.  BD

TUESDAY, July 3 (HealthDay News) -- As employers and insurance companies shift more of the cost of prescription drugs onto consumers, actual spending on these medications declines, new research finds.  For each 10 percent increase in cost-sharing, prescription drug spending went down by 2 percent to 6 percent.

For people with certain chronic medical conditions, this means more money is probably spent on expensive medical services and health outcomes worsen down the line, the researchers add.  But increases in pharmacy spending have caused insurers and employers to try to move some of that cost onto the consumer.

For patients with congestive heart failure, lipid disorders, diabetes and schizophrenia, higher cost-sharing meant more use of medical services.

"There is some evidence that cost-sharing costs insurers more down the road, suggesting that the best strategy is to give people their medicine for free," Goldman continued. "Some insurers are actually moving toward that for certain chronic diseases."  Once the consumer knows what the cost is, she can have a conversation with her physician about costs versus benefits. This gets her more invested in her own course of treatment, which will promote greater compliance with the entire gamut of treatment."

As Costs of Drugs Shift to Consumers, Spending Drops - Forbes.com