By Neha MathurJun 13 2023Reviewed by Benedette Cuffari, M.Sc. In a recent article published in the Journal of Clinical Oncology, researchers reveal significant cost savings when generic oncology drugs are purchased through the Mark Cuban Cost Plus Drug Company as compared to Medicare.
The Medicare program contributes a substantial proportion of prescription drug spending in the U.S., which was already high and continues to increase over time. In fact, in 2019, Medicare and its beneficiaries accounted for 27.2% of the fee-for-service program. Although oncology prescription drugs constituted only 0.6% of overall sales volume in 2020, these drugs represented a disproportionate cost within Medicare Part D at 13.2%.
This dataset specified the unit price of each dosage unit, which was subsequently used to calculate the dosage price of a 30-day prescription. Each dosage unit covered the 15% markup, as well as the $3.00 USD and $5.00 USD pharmacy and shipping fees, respectively. To this end, the researchers first calculated the difference between MCCPDC prices and Medicare Part D plan pricing for each drug. These prices were subsequently extrapolated for a specified month and year. Finally, the researchers estimated how many Part D beneficiaries could benefit from the MCCPDC plan annually.
It is crucial that physicians and their patients are aware of cash-pay alternatives, as these substitutes might reduce drug prices for Medicare Part D beneficiaries who choose to buy drugs outside their health plans.