Americans’ bad medication-related decisions accounted for $418 billion in waste last year, and the impact was most deeply felt in those states that could least afford it.
That is the finding of new research from Express Scripts released today and shared with clients attending the company’s 17th annual Outcomes Symposium in Orlando, Fla.
“Our nation pays a huge price for bad medication-related decisions, and it is clear that the price is even more costly for those at the lowest end of the economic spectrum,” says Steve Miller, MD, senior vice president & chief medical officer.
The analysis shows that pharmacy-related waste is significantly disproportionate among the poorest states. Mississippi, which has the lowest median household income in the country, had the most wasteful spending, totaling $1,622.76 per resident. The other low-income states that top the list in unnecessary pharmacy-related costs include Louisiana, Arkansas, Alabama, Kentucky, Tennessee, South Carolina, New Mexico and Oklahoma.
“The good news is that our country can save billions of dollars for patients, employers and the government simply by driving better decisions within the pharmacy benefit, and Express Scripts has solutions to make that possible,” Steve says. “We combine three unique capabilities — behavioral sciences, clinical specialization and actionable data — to create Health Decision Science℠, our innovative approach to help individuals make the best drug choices, pharmacy choices and health choices. And better decisions mean healthier outcomes.”
For the research study, waste was defined as extra medication-related spending that provided no additional clinical benefit. This includes the use of high-priced prescription drugs and pharmacies when clinically equivalent or superior alternatives existed, as well as unnecessary medical expenses that could have been avoided by patients adhering to their medication therapies.
The research revealed the following:
· $55.8 billion was spent unnecessarily on higher-priced medications when more affordable, clinically equivalent alternatives were available.
· $93.1 billion could have been saved if patients would have used the most cost-effective and clinically appropriate pharmacies, including home delivery and specialty. This savings includes $33.5 billion in lower drug costs, as well as $59.6 billion in avoided medical costs attributed to the higher adherence rates associated with home delivery and specialty pharmacies.
· An additional $269.4 billion was spent on avoidable medical and pharmacy expenses as a result of patients not remaining adherent to their medication treatments. This total does not include the $59.6 billion in adherence savings directly associated with better pharmacy choices.
According to the research, the most wasteful one-third of states spent between $1,404.82 and $1,622.76 per capita in avoidable costs. States with high levels of waste were found to be primarily located in the southern region of the country — an area also associated with higher rates of chronic disease. States with the lowest levels of avoidable costs were predominantly in the Midwest and Northeast. Vermont wasted the least amount per capita among all states in the U.S. yet still experienced an average of $1,004.39 in unnecessary costs per resident.
“It’s hard to believe, but when we consider associated medical expenses, bad pharmacy-related decisions waste more money than what the country spends in total on prescription drugs,” Steve says. “We are at a pivotal moment and have the solutions necessary to help our clients manage drug spend instead of having it manage them.”