Seniors using Medicare Part D are overpaying for prescriptions, study says
Download mp3 (1.12 MB)Medicare is meant to keep healthcare affordable for seniors.
But a new JAMA study of 50 generic drugs suggests Part D participants are overpaying for drugs because private insurers are artificially inflating costs.
Three-quarters of Medicare recipients are enrolled in Part D plans, which cover prescriptions through private insurers.
These insurers reimburse pharmacies for the drugs they dispense; if insurers overpay, they can “claw back” some of that money.
But, in the meantime, patient copays are based on the original, higher drug value.
In one case, insurers reimbursed $126 per tablet for a cancer drug that cost pharmacies $4.20. That’s a difference of more than $3,600 for a 30-day supply.
The U.S. Senate has already targeted the general problem for reform, but the JAMA study is the first to establish its specific impact on Part D.
