Obamacare: first data on prescription costs
Now that Obamacare has been in operation for a while, and even though the government can’t seem to manage to tell us the demographics of the enrollees, some relevant data is nevertheless starting to roll in. So far the news on prescriptions is not good:
Express Scripts, a large Pharmacy Benefit Management company that, so far as I know, has no axe to grind either in favor or opposition to the ACA, has published a report indicating that, at least so far, costs per member on the Exchanges are 35% higher than they are for commercial policies off the Exchanges. The study is based on a national sample of more than 650,000 pharmacy claims (423,000 covered lives) for the first two months of 2014 for patients enrolled in an Exchange policy with with pharmacy benefit coverage administered by Express Scripts. The analysis compared these pharmacy claims to those from commercial health plans, with pharmacy coverage administered by Express Scripts, during the same time period.
According to data from the government’s own Actuarial Value Calculator, pharmaceutical expenses comprise about 21% of total healthcare expenses. Having to pay 35% more for such expenses is thus significant in and of itself. But peer-reviewed scholarly research such as that summarized and extended here indicates that pharmaceutical claims correlate positively with overall healthcare expenses. The higher pharmaceutical claims may just be the tip of the iceberg.
It makes sense. Of course, perhaps the initial enrollees were the people who just couldn’t wait for Obamacare, and what we’re seeing is their pent-up demand unleashed. Perhaps later enrollees will be healthier. But meanwhile, a 35% increase represents quite a chunk of change.
Quelle suprise!
“The analysis compared these pharmacy claims (from Exchange plans- my edit) to those from commercial health plans, with pharmacy coverage administered by Express Scripts, during the same time period.”
Need to see more data before anyone can conclude anything about the 35% payout difference. Generic v. branded Rxs in the two groups is an example of data needed. How comparable are the two groups? It would be interesting to stratify by drug type, e.g. antihypertensives, in the two groups.
Also, I do not know how Express Scripts generates its revenue- a flat charge per prescribed drug? A % of drug costs incurred per calendar date per insured?
Sounds like lots of sick people signed up. Who could have known?
“Sounds like lots of sick people signed up. Who could have known?”
Ce qui est surprenant c’est qu’il n’y ait pas de surprise, méªme cet idiot Sarah Palin a vu venir cela. 😉
Just did my fargin’ taxes. Found out that thanks to ObamaScare, the minimum for deducting medical expenses has been RAISED by 25 percent.
Last year, you could deduct such expenses if they exceeded 7.5% of your AGI; this year, only if they exceed 10% of your AGI.
Just another way of herding all of us cattle into their stockyard.
I talked a week ago to a drone of an ex-boyfriend who’s on Obamacare in Tenn. and happy with it; hasn’t had to use it so far but says it costs him about ninety bux a month and has his doctor on the plan; low deductible and everything else.
He lied about his income, said it was a bit lower than it is, so he could get the best deal. Hasn’t had a job in the last 3 years, and is a white college grad, 59, who used to be an IT guy.
Just wanted to let you know who you’re carrying on your backs. He spends very little time actually looking for work: said he didn’t want to freelance (which I’ve been doing for twenty years!) because “I don’t want to pay for health insurance.” Well, now he doesn’t have to. Isn’t that special?
His 90-something mother gives him about 10 grand annually to help keep him afloat.
A lot of spies and assassins and bodyguards can be trained for 10k a year.
At least in the black inner fiefdom cities and plantations.
It’s the drones who know the price of everything and the value of nothing.
It looks like Reid has graduated from owning a few slaves on a plantation or owning a metropolitan city area, into owning 85% of Nevada and rendering everyone in that 85% into serfs or slaves.
How’s that for Leftist fair sharing, wealth redistribution, equality, homosexual rights, and babble non stop stuff?
Please don’t call it ACA. It’s Obamacare.
Sorry, meant to say that’s a note to pharms and doctors’ offices.
Beverly: the change from 7.5% to 10% is a 33% increase.