In Sunday's edition of the New York Times, Robert Pear reported that:
“Medicare beneficiaries would often have to pay higher premiums for prescription drug coverage, but many would see their total drug spending decline, so they would save money as a result of health legislation moving through the House, the Congressional Budget Office said in a recent report.”
The "but" is at the very end of the article:
“But, Mr. Elmendorf said, the averages conceal the fact that beneficiaries would be affected in different ways.”
(That’s Doug Elmendorf, director of the CBO.)
And when you consider the, um, facts …
“Those who use a relatively small amount of prescription drugs would pay more in additional premiums than they would save, he said, while those who use a large amount of drugs would gain more from lower cost-sharing than they would pay in higher premiums.”
The CBO study was undertaken at the request of Representative Dave Camp (R, MI), the senior Republican on the
Mr. Pear ends by reporting that, “The budget office did not estimate how many Medicare beneficiaries might see an increase in their spending for prescription drugs and drug coverage, and how many would see a reduction, under the House bill. Mr. Camp said “the vast majority of seniors” would pay more, and he said House Democrats should scrap their bill and “start over with open, bipartisan talks.”
The complete New York Times article can be found here.
What’s the problem with higher co-pays? They reduce usage and compliance. Great if you’re trying to save money in the short-term. Not so great if you’re trying to enhance patient outcomes over the long-term. Short-term-savings (a political objective) vs. long-term patient health (which is also much more cost-effective in the long-term).
Short-term (political) thinking delivers long-term (public health) problems.
According to a recent study by Wolters Kluwer Health, fewer Americans are filling their drug prescriptions. In the fourth quarter of 2008,
Why?
Drug prices. It's not that the cost of prescription drugs is rising - it's patients' out-of-pocket costs, or co-pays. One of the reasons for this is that insurance companies, reluctant to foot the bill for brand-name medications, have been refusing to cover more brand-name prescriptions.
In the fourth quarter of 2008, in fact, health insurers denied coverage for 10.8 percent of brand-name drugs - a jump of 21 percent from the first quarter of 2007.
And it's not because the medicines themselves are becoming more expensive. Between 1998 and 2003, prescription drug costs increased by $22.48 per person. Meanwhile during that same period, the average health insurance premium went up by $104.62 per person.
When co-pays go up, more people see the need to abandon their prescription drug regimen. At least that's what a study from
As health care costs continue to rise, it's understandable that insurance companies (including the nation’s biggest payer – Uncle Sam) are looking to save money wherever possible. Passing off the cost of prescription drugs to patients, however, will only drive up overall costs while resulting in dramatically poorer health for more Americans.
