Generic drugs, which are copies of a brand-name medicine made after the patents have expired, have save consumers and health plans a lot of money. They are also very profitable for the companies that make and sell them. Just as with brand-name medications, a lot of games are played in the distribution and payment chain for these drugs, games that make them more expensive than they should be. A study looked at various methods of acquiring a generic drug for a neurological condition, like Parkinsons. A direct-to-consumer pharmacy, Mark Cuban’s in this case, was compared to the costs in a typical health insurance plan using the conventional pharmacy distribution method. Out-of-pocket costs for patients in the direct-to-consumer model were 75% higher, but the actual total cost of the drug was about 400% lower than in the private health insurance plan. The obvious solution would seem to be for health plans to use or allow the use of direct-to-consumer pharmacies and reimburse the full cost. Everyone would save money. (JAMA Study)
