SAN FRANCISCO, June 26, 2006 (PRIMEZONE) -- CARxE (The Coalition to Advance Prescription Drug Education) conducted a study demonstrating the high pricing variations among Medicare drug plans. This new information underscores the importance for seniors to use free web-based tools to identify the lowest cost plan for their drug regimen. It also makes clear that most seniors can find a plan that works to their advantage. The study's findings will be released at today's National Association of Health Underwriters (NAHU) meeting in San Francisco.
The CARxE study found that by using online comparison tools, seniors could choose a plan that costs one-third or less than the highest priced plan.
"These data show how critical it is for seniors and their families to make an informed choice rather than guess," said Bob Ohr, Chief Executive Officer, CARxE. "Healthcare consumerism is still relatively new. When consumers have better information, they will save money. But informed decisions will also reshape the market."
The CARxE Study tracked total out-of-pocket pricing for each drug plan in 24 major U.S. markets using "drug bundles" typical to nine chronic conditions: Alzheimer's, allergy, asthma, cholesterol, depression, diabetes, GERD, heart disease, and osteoporosis. For example, in June, the 47 Medicare drug plans in Los Angeles (zip code 90011) had pricing variations -- the multiple difference between the highest and lowest price plan for the same drugs -- that ranged from 185 percent for Diabetes to 503 percent for Gastro-Esophageal Reflux Disease (GERD). The June data for Los Angeles showed that seniors with GERD choosing the lowest cost plan would pay $495 per year, compared with $2,488 for the most expensive plan, a $1,993 annual difference.
The study also tracked a bundle of seniors' 19 "Most Prescribed" drugs, which provides an approximate index of broader market variation. The Los Angeles June data for the Most Prescribed bundle showed a 367 percent difference, or $12,522, in the annual pricing of the highest and lowest priced plans.
Within and across markets, some plans offered consistently low pricing. For example, Humana's PDP Standard and Enhanced plans emerged repeatedly in the study's listings of lowest priced plans. United's Medicare MedAdvance plan, PacifiCare's Saver Plan and the Wellcare Complete Plan were also highly competitive.
"Seniors can change Medicare drug plans once a year," said Ohr. "CARxE will continue tracking drug plan pricing and making that information freely available. As open enrollment approaches, seniors and their helpers can see how much their drugs would have cost on each plan. This study clearly shows that the differences can be substantial."
The CARxE Gateway was made available with permission from the Centers for Medicaid and Medicare Services (CMS) and made possible by donations from industry partners. The price comparison technology for CARxE is licensed from DestinationRx, Inc., a company that licenses the same technology to CMS for its Plan Finder tool.
About CARxE
The Coalition to Advance Prescription Drug Education (CARxE) is a not-for-profit independent coalition. CARxE provides free, unbiased market information that allows greater awareness and choices by consumers, family members, caregivers, doctors, pharmacists, hospitals and clergy. More information is available at www.carxe.org.