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Trends That Matter for Medicare Part D Costs

Posted by Leslie Small on Aug 15, 2019

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A recently published study in Health Affairs shines a light on a peculiar quirk of the Medicare Part D benefit structure: For some high-priced specialty medications, seniors might pay less out-of-pocket for brand-name drugs than their generic counterparts.

The study found that, assuming a 61% discount between brand-name and generic drugs, Part D beneficiaries with prescriptions costing between $22,000 and $80,000 per year would have lower out-of-pocket spending if they use brand-name drugs over a generic, AIS Health reported.
 
The graphics below show the annual out-of-pocket savings associated with generic drugs and the median-point-of-sale price differences of brand-name drugs and their generic counterparts.
 
For Medicare Part D Beneficiaries, Generics May Not Always Be Cheaper
 

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Topics: Industry Trends, Product Release, Data & Analytics