March 11, 2024
Payers | Tea Leaves
  • According to a recent study, Medicare Part D overpays for certain over-the-counter (OTC) drugs that are covered when prescribed by a doctor. In addition, these higher costs filtered down to beneficiaries, and in some cases, their cost-sharing was also higher. Researchers at Johns Hopkins identified 22 drugs that are available both OTC and via prescription; in 2020, Medicare paid out claims for 20 of those therapies. The analysts then identified the OTC price for these drugs, finding prices for 19. The study estimates that Medicare could have avoided $406 million in unnecessary spending if it paid the cash price for all 19 over-the-counter products. (Article here)