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Prescription Medicines-Costs in Context PowerPoint Presentation

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Description : Check out this medical PowerPoint presentation titled "Prescription Medicines: Costs in Context".

This medical PowerPoint presentation tells us how prescription medicines can be costly, and the cost can vary depending on a number of factors, such as the type of medication, the dosage, the duration of treatment, and the location where the medication is being purchased.

In the United States, prescription drug prices are generally higher than in other developed countries, and this can create financial barriers for many individuals who need medication to manage chronic conditions or other health issues. The cost of prescription medicines in the US is driven by a variety of factors, including research and development costs, marketing expenses, and the lack of price regulation.

One way to reduce the cost of prescription medicines is to explore generic alternatives. Generic drugs are equivalent to brand-name drugs in terms of safety and effectiveness but are often significantly cheaper. Another option is to look for patient assistance programs, which can help reduce the cost of medications for eligible individuals.

Its also worth noting that some insurance plans may cover the cost of prescription medicines, but the extent of coverage can vary widely depending on the plan. Its important to carefully review your insurance coverage and understand any co-pays, deductibles, or other out-of-pocket expenses that may apply.

Overall, the cost of prescription medicines is an important consideration when managing your health and finances. By exploring your options and understanding the factors that contribute to medication costs, you can make informed decisions about your healthcare and potentially save money on prescription medications.

Tags : Prescription Medicines, pharmaceuticals, pharmaceuticals PowerPoint presentations

Published on : Jun 23, 2023 | Views : 891 | Downloads : 0

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Slide 1-

Prescription Medicines:Costs in Context 2020
Slide 2-

We are in a New Era of Medicine Where Breakthrough Science is Transforming Patient Care 2 56 New Medicines Were Approved by the FDA in 2019 Prescription Medicines: Costs in Context www.phrma.org/cost Cancer death rate posts biggest one-year drop ever Newly approved drug being called ‘game changer’ for people who suffer from hemophilia Reasons for hope: the drugs, tests and tactics that may conquer coronavirus Cancer Death Rate Game Changer Coronavirus Vaccine
Slide 3-

Out-of-pocket Costs for the Sickest Continue to Soar Despite a Dramatic Slowdown in Medicine Prices and Spending 3 Brand Medicine Prices Retail Medicine Spending 2018 0.3% 2018 2.5% Prescription Medicines: Costs in Context www.phrma.org/cost
Slide 4-

Negotiating power is increasingly concentrated among fewer pharmacy benefit managers (PBMs). Top 3 Market Share: 74% OptumRx (UnitedHealthGroup) CVS Health (Caremark) Express Scripts All Other 4 Insurers and PBMs Have a Lot of Leverage to Hold Down Medicine Costs Insurers determine: FORMULARYif a medicine is covered TIER PLACEMENTpatient cost sharing ACCESSIBILITYutilization management through prior authorization or fail first PROVIDER INCENTIVESpreferred treatment guidelines and pathways Prescription Medicines: Costs in Context www.phrma.org/cost Source: Drug Channels Institute, March 2020.
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5 Spending on Retail and Physician-administered Medicines Represents Just 14% of Health Care Spending Prescription Medicines: Costs in Context www.phrma.org/cost Source: PhRMA analysis of CMS National Health Expenditures data, Altarum Institute study, 2015. May not sum to 100% due to rounding. 7% Brand Manufacturers 3% Generic Manufacturers 4% Supply Chain Entities
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91% of All Medicines Dispensed in the United States are Generics $1.99 trillion 10-year savings (2009 - 2018) Prescription Medicines: Costs in Context www.phrma.org/cost Source: IMS Health. Drug Channels Institute, March 2020. Source: Association for Accessible Medicines. “Generic Drug & Biosimilars Access & Savings Report,” 2019.
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7 Medicine Spending is Projected to Grow in Line with Health Care Spending Through Next Decade Prescription Medicines: Costs in Context www.phrma.org/cost Total Health Spending Growth Rate Prescription Drug Spending Growth Rate In 7 of the last 10 years, Retail Drug Spending Growth was below Total Health Spending Growth Annual Growth Rate 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2024 2025 2026 2027 2028 14% 12% 10% 8% 6% 4% 2% 0% Projections show retail drug spending growth in line with overall health spending Source: CMS National Health Expenditures Report 2020 Note: Total retail sales include brand medicines and generics.
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8 Nearly Half of Spending on Brand Medicines Goes to Entities Other Than the Manufacturers Who Developed Them Rebates, discounts, fees and other price concessions have more than doubled since 2012 $74B $175B Prescription Medicines: Costs in Context www.phrma.org/cost Source: Berkeley Research Group, 2020. Percent of Total Spending on Brand Medicines Received by Manufacturers and Other Entities, 2018 Source: Drug Channels Institute, March 2020.
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9 Patients Face Rising Out-of-pocket Costs for Medicines and Other Barriers to Care The use of four or more cost-sharing tiers is becoming more common on employer plans Percent of plans with deductibles on prescription drugs Prescription Medicines: Costs in Context www.phrma.org/cost 23% 52% 2012 2017 Source: PWC, KFF
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Too Often, Negotiated Savings Do Not Make Their Way to Patients 10 Cost sharing for nearly 1 in 5 brand prescriptions is based on list price More than half of commercially insured patients’ out-of-pocket spending for brand medicines is based on the full list price 55% Copay Deductible Coinsurance Prescription Medicines: Costs in Context www.phrma.org/cost Source: IQVIA. May 2018.
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Patients Face High Out-of-pocket Costs at the Pharmacy Counter Even Though Total Spending on Other Parts of the Health Care System is Far Higher 11 Hospital spending is much higher than prescription drug spending. Yet patients pay more out-of-pocket for medicines than for hospital care. $1,191.8B $335B $47.1B $34.8B $850B Prescription Medicines: Costs in Context www.phrma.org/cost Source: Drug Channels Institute analysis of National Health Expenditure Accounts, Office of the Actuary in the Centers for Medicare & Medicaid Services, December 2019. Outpatient prescription drug figures exclude inpatient prescription drug spending within hospitals and nearly all provider-administered outpatient drugs. Figures in billions.
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12 Hospitals Account for 1/3 of All U.S. Health Care Spending and Contribute to Patient Out-of-pocket Costs by Marking Up Medicines Prescription Medicines: Costs in Context www.phrma.org/cost An analysis found that 320 hospitals mark up some medicine prices at least 1,000% Nearly one in five hospitals marks up medicine prices to 700% or more of their acquisition cost If a hospital purchased a medicine for $150, a 700% markup could result in patients being billed $1,050 for that medicine 1,000% Amount paid by hospital Amount billed by hospital $1,050 $150 Source: The Moran Company. Hospital Charges and Reimbursement for Medicines: Analysis of Cost-to Charge Ratios. September 2018.
Slide 13-

Hospitals and Other Health Care Providers Use the 340B Drug Discount Program to Retain an Increasing Share of Medicine Spending 13 The amount of brand medicine spending retained by hospitals, pharmacies and providers grew 2x between 2013 and 2018. 9X $3.5B $21.2B $30.6B $18.0B Source: Berkeley Research Group.
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14 Medicine Spending in the United States is In Line with Spending Around the World Prescription Medicines as a Percentage of Total Health Care Spending 14% Canada 14% USA 11% UK 13% France 13% Germany 15% Italy 12% Spain 16% Japan 10% Australia 16% Korea Prescription Medicines: Costs in Context www.phrma.org/cost Note: Total health care spending includes hospital care, physician and clinical services, home health and nursing home care, government administration and net cost of private health insurance, dental, home health and other professional services as well as durable medical equipment. Source: OECD Health Statistics Database (accessed February 2016); Altarum Institute, 2015, A ten year projection of the prescription drug share of national health expenditures including non-retail.
Slide 15-

More Medicines are Available to U.S. Patients as Compared with Other Countries that Set Prices Artificially Low 15 Number of New Medicines Available by Country, January 2011 - June 2019 Prescription Medicines: Costs in Context www.phrma.org/cost The 5-year survival rate for all cancers is 42% higher for men and 15% higher for women in the U.S. than in Europe. Source: PhRMA analysis of IQVIA Analytics Link and FDA, EMA and PMDA data. January 2020. Note: New Active Substances (NASs) approved by the FDA, EMA and/or PMDA and first launched in any country between January 2011 and June 2019. Average delay represents the time in months since global first launch among NASs that have launched in a given country. IQVIA reports only the retail channel for Greece.
Slide 16-

MAT makes it easier for those struggling to afford their medicines to find and learn more about various programs that can make prescription medicines more affordable. PhRMA Created the Medicine Assistance Tool, or MAT, To Help Patients Navigate Medicine Affordability A search engine to connect patients with 900+ assistance programs offered by biopharmaceutical companies, including some free or nearly free options Resources to help patients navigate their insurance coverage Links to biopharmaceutical company websites where information about the cost of a prescription medicine is available The Medicine Assistance Tool Includes: Prescription Medicines: Costs in Context www.phrma.org/cost
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PhRMA Is Working to Fix the Health Care System So It Works Better for Patients 17 Improving Patient Affordability Fixing Market Incentives Shifting Toward Value Increasing Competition Require insurers & PBMs to pass through negotiated rebates and discounts Establish an annual cap on patient out-of-pocket costs in Part D Allow patients to spread costs throughout the year Lower patients’ cost sharing from 25% to 20% in Part D Delink supply chain payments from list prices Reduce 340B distortions Citizen petitions Patent settlements Patent transparency Remove barriers to innovative payment arrangements Identify better tools for value assessment Prescription Medicines: Costs in Context www.phrma.org/cost