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One draft ideally sums up because people are angry about medication prices


prescription drugs
Pharmacist
Jim Pearce fills a Suboxone medication at Boston Healthcare for
the Homeless Program in Boston, Massachusetts Jan 14,
2013.

REUTERS/Brian
Snyder


Health insurance companies are starting to compensate closer attention
to the volume of income they’re spending on prescription
drugs. 

The Blue Cross Blue Shield Association (BCBSA) — an organization
that accounts for 36 eccentric companies, covering 106
million people —
found that over the past 7 years,
 prescription drug
spending has left up 10% a year, not accounting for rebates or
discounts drug companies may have paid back to the
insurer. And it’s generally being felt by the people on
BCBSA’s plans.

On the whole, out of pocket spending on medication drugs rose
every year by 3%, but for branded drugs that are still on patent,
the out of pocket spending rose by 18% every year. 

That was in vast partial since of newer drugs that have been
authorized in new years with high list prices,
BCBSA’s chief strategy officer Maureen Sullivan told
Business Insider.

The new drugs create a jagged volume of drug spending,
as shown in the draft below. By 2016, branded drugs that
didn’t face foe done up 63% of the sum volume BCBSA
spent on medication drugs. At the same time, cheaper generic
medications make up some-more than 80% of the prescriptions BCBSA
filled.


Screen Shot 2017 05 02 at 2.54.48 PMBlue
Cross Blue Shield

 

Notably, the report doesn’t comment for rebates or discounts
drugmakers compensate to insurers and pharmacy advantage managers for
branded medication drugs. It’s a subject that’s been hotly
contested in the industry, and some drug companies including

Johnson Johnson
 and
Merck
 have started disclosing how much prices have
increasing on a net turn (that is, accounting for those rebates).
The rebates are upheld back to patients possibly around reduce co-pay
amounts, or in the form of reduce insurance premiums. 

The reason the rebates aren’t partial of the report, Sullivan said,
is that rebates are kept
confidential
, but from what she’s celebrated they’re not
growing as quickly as the list prices for the new
medications. 

As distant as gripping these cost increases from continuing, Sullivan
pronounced she’s meddlesome in getting some some-more clarity in how
newer, pricey treatments review to older drugs that provide the
same conditions. That way, the new drugs would have to show
either they are worth using. Sullivan pronounced she’d also like to
have conversations among all the opposite tools of the
medical complement to come up with a solution to rising drug
spending.

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