A report released recently said that the cheaper generic drugs will keep on reducing costs for US government, insurers and also for the patients registered in federal prescription drug benefit. According to a research conducted, it was found that eight out of ten most widely prescribed drug classes under the program known as Medicare Part D have fallen from $1.50 in Jan 2006 to $1 average daily cost of therapy in Dec 2010.
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A study conducted by Murray Aitken of IMS Institute of Healthcare Informatics, Ernst Berndt of Massachusetts Institute of Technology and the National Bureau of Economic Research, the drift towards cheap generic drug, regardless of various brand names, will expectedly grow till 2015. The study also forecasts the average cost of therapy will fall to approximately 65 percent by the end of 2015 or it may also be said that the average cost of therapy will be 57 percent lower than it was seen in January 2006.
This result could raise issues over increasing cost of Part D which funds the medicines for seniors and diabled Medicare patients who pay a part of costs by insurance plan and out of pocket. Part D acme into effect in 2006 after it was formulated under 2003 legislation passed by Republican-led Congress and was approved into law by former and then President George W. Bush. It has been condemned for being not financed sufficiently, an expensive drag on healthcare system and contributor to nation’s debt.
Reputed companies like Aetna Inc, Humana Inc and CVS Caremark sell Part D plans, however it is left unseen by Centers in Medicare and Medicaid Services. As per a report issued by Medicare Trustees , 34.4 million Americans were registred in Part D plans last year who received an average of $1,789 in profits. They also said nearly $62 billion was spent in 2010 on Part D prescription drug benefits and also predicted that this figure would increase to $67 billion this year and $157 billion by 2010 since aging United States population witness more people enroll.
On the contrary, authors in one of their said that this may be exaggerating the costs. The researchers concluded that the cost decline as seen in previous 5 years of medicare Part D may continue further. The decade from 2006 witnesses gradually falling average daily cost of therapy. Berndt, a co-author said CMS has moderately over-projected the costs of futre prescription drugs. He also said it neither takes properly into account the fairly expected patent protection expirations.
