Wednesday, April 18, 2012

Report: Higher-Priced Drugs Added $2.1B to 2011 Workers' Comp Pharmacy Costs

Who is paying for these drugs?

When the insurance company foots the bill, some people tend to treat themselves to higher cost medicine.  If the insurance company is paying, why not get the name brand?  

I'm not blaming people for going for the higher cost meds because it is human nature to perceive a better quality from a higher priced product.  The consumer needs to realize though that the system can't sustain such high prices without them being passed on to the consumer.

Employers must pay the premiums for workers' comp, but when people take advantage of the system, we all pay for it.  It might result in higher medical insurance costs, higher prices to make up for business owners' increased over head, and higher prices for over the counter and prescription drugs.
Take a look at some of these statistics from a study highlighted in the Claims Journal's article below:

  • $2 billion of waste resulting from use of higher-cost medications when therapeutically equivalent, lower-cost alternatives are available.
  • $107 million of waste through use of out-of-network pharmacies and third-party billing.
  • $40 million of waste from use of higher-cost delivery channels such as retail pharmacies instead of home delivery for long-term medications used by injured workers.
Its in all our best interests (insurance companies included) to keep workers' comp premiums down.  Hopefully, we can find a way to curtail useless spending and price gouging by pharmaceutical companies.

To read the full article, click the link below:
Report: Higher-Priced Drugs Added $2.1B to 2011 Workers' Comp Pharmacy Costs:

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