Healthy Skepticism Library item: 8166

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: Journal Article

Meyer H.
The pills that ate your profits.
Hosp Health Netw 1998 Feb 5; 72:(3):18-22

Abstract:

The attempts of health maintenance organizations (HMOs) to reduce prescription drug outlays, despite a wave of direct-to-consumer ads for pricey new drugs, by cutting the number of drugs they will pay for and by hiking copays, are discussed. It was noted that prescription drugs now account for as much as 15% of total medical costs for some plans, up from less than 10% historically. HMOs and pharmacy benefits management firms aim to narrow huge variations in physicians’ prescribing routines, but it is a delicate task. They cannot afford to jeopardize quality or inadvertently shift patients into costlier forms of care. The opposing forces of managed care health plans and drug manufacturers in determining pharmacy costs in hospitals are considered.

Keywords:
Advertising Cost Control/methods Cost Sharing Drug Costs* Drug Industry Drug Utilization/economics Drug Utilization/statistics & numerical data* Formularies Health Maintenance Organizations/economics* Humans Insurance, Pharmaceutical Services Physician's Practice Patterns/statistics & numerical data United States