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elleng

(130,895 posts)
Fri Jun 20, 2014, 05:59 PM Jun 2014

Health Plans Bring Pressure to Bear on Drug Prices.

In dealing with health plans, drug companies are facing a new imperative — bargain or be banned.

Determined to slow the rapid rise in drug prices, more health plans are refusing to cover certain drugs unless the companies charge less for them.

The strategy appears to be getting pharmaceutical makers to compete on price. Some big-selling products, like the respiratory medicine Advair and the diabetes drug Victoza, have suffered precipitous declines in market share because Express Scripts, the biggest pharmacy benefits manager, recently stopped paying for them for many patients.

“There’s clearly more price competition in the marketplace,” Andrew Witty, chief executive of GlaxoSmithKline, said, talking about Advair in a recent company earnings call.

Executives of pharmacy benefit management firms say they must do something to cope with rising prices, particularly for so-called specialty pharmaceuticals, which are used to treat complex diseases like cancer and multiple sclerosis.

http://www.nytimes.com/2014/06/21/business/health-plans-bring-pressure-to-bear-on-drug-prices.html?hp

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Health Plans Bring Pressure to Bear on Drug Prices. (Original Post) elleng Jun 2014 OP
Anything that increases competition in the market and cbayer Jun 2014 #1
It makes sense to move people to a different medicine when the hedgehog Jun 2014 #2
I don't disagree with you. cbayer Jun 2014 #3
I'm lucky - our GP is a firm believer in #3 - hedgehog Jun 2014 #4
One point - Medicare is the program for the elderly and disabled. cbayer Jun 2014 #5

cbayer

(146,218 posts)
1. Anything that increases competition in the market and
Sat Jun 21, 2014, 10:32 AM
Jun 2014

lowers the prices is ok by me.

As long as it doesn't impact on patients being able to get what they really need.

And as much as americans aren't going to like it, there is going to have to be some rationing here. These ultra-expensive drugs have their place, but it may be that not everyone should be able to get them.

hedgehog

(36,286 posts)
2. It makes sense to move people to a different medicine when the
Sun Jun 22, 2014, 02:26 AM
Jun 2014

only difference is the name on the label. It shouldn't happen otherwise unless the less expensive medication actually does what is needed.

Ex. 1: If I stay on name brand Synthroid, my dosage is rock solid. If I switch to the generic, my dosage goes up and down repeatedly.

Ex. 2: I went to school with someone who is now a doctor - a rather influential one. I about fell over when she commented instead of prescribing a new, very effective drug, she thought the old, less effective drug with more side effects was good enough for her patients on Medicare. (Sorry that I can't recall the specific drugs she named.)

Ex.3: there are many conditions (Depression, high blood pressure) for which there are different drugs and even different types of drugs.
Very often, it's the expensive drug that works the best and has fewer side effects for some patients.

FWIW - I am on a number of scripts for my autoimmune disease, and only one of them is still the name brand. I loved going from a monthly co-pay above $175 to about $25 as my medications went to generic!

cbayer

(146,218 posts)
3. I don't disagree with you.
Sun Jun 22, 2014, 09:07 AM
Jun 2014

I think patients come first, but I also think it's important to realize that some compromises may in order.

Ex 1: Small variations in thryoid functions are not really a big deal unless you become significantly symptomatic. If your dose is being altered based on blood tests alone when on generics, it may be completely unnecessary. But sometimes it does make sense to stick with the brand name product.

Ex. 2: Pharmaceutical costs associated with Medicare are astronomical. Brand new drugs are particularly costly as there is no generic equivalent. They are sometimes also higher risk because they haven't been in the general population that long. A decision to continue to use what is known, even though it appears to have more side effects, is sometimes a very wise choice.

Ex. 3: When there are multiple drugs available for a certain condition, physicians and patients should have the option of having repeated trials until they find what works. But, frankly, they should start with the least expensive alternatives first, all other things being equal.

hedgehog

(36,286 posts)
4. I'm lucky - our GP is a firm believer in #3 -
Sun Jun 22, 2014, 09:56 AM
Jun 2014

as far as #2 goes, I wish I could name the two drugs. You'd recognize them and realize that this doctor was really giving her poorer patients sub-par care. It's one thing to try to reduce medical costs, but she was rationing based on whether the government or the insurance company was buying the drugs! She said something on the order that X was good enough 30 years ago, it's good enough for those people now.

cbayer

(146,218 posts)
5. One point - Medicare is the program for the elderly and disabled.
Sun Jun 22, 2014, 10:09 AM
Jun 2014

Medicaid is the program for the poor. So I'm not sure you can conclude that she was giving her poorer patients sub-par care. Medicare patients have to sign up for part D plans that cover medications. They may have restrictive pharmacies. The issue, in those cases, is whether the companies covering the meds have made a decision not to cover certain drugs, and it may be out of the hands of the physician.

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