Part D Providing Lower Costs, Improved Access, Study Shows

Washington, D.C. (November 2, 2006) — Medicare beneficiaries previously without drug coverage significantly reduced their out-of-pocket costs and have improved access to medicines due to the Medicare Part D prescription drug benefit, according to a new study released today by the Pharmaceutical Research and Manufacturers of America (PhRMA).

Click here to read the Amundsen Study

The study, conducted by the Amundsen Group, found that average monthly out-of-pocket drug costs for beneficiaries previously without drug coverage dropped by a half, from $59 in 2005 to $29 under Part D. In the same time period, the number of beneficiaries spending over $50 per month dropped from 34 percent to 18 percent, with an increase in percentage of patients spending less than $10 monthly from 27 percent to 42 percent. Average patient out-of-pocket costs for each day’s supply dropped 74%, from $1.58 to $0.40.

“Medicare beneficiaries are receiving better access to care under the prescription drug benefit, which means they are living healthier lives,” said PhRMA Senior Vice President Ken Johnson. “Even better, they’re getting this care for much less money than they were spending before.”

At the same time that out-of-pockets costs fell, the study found that previously uninsured seniors were able to fill more prescriptions, demonstrating that Medicare beneficiaries improved their access to prescription medications. The average number of prescriptions per 1,000 patients with key chronic conditions, such as Alzheimer’s disease, high cholesterol, diabetes and osteoporosis, more than doubled under Part D. These results suggest that patients with these conditions are able to get drug treatment under Part D that they were not previously receiving.

“The kind of gains we have seen within the first six months of the benefit are remarkable,” Johnson said. “With more seniors enrolling in the benefit for 2007, we can expect to see even more improvements in the prescription drug coverage that is now available to America’s seniors.”

Open enrollment begins November 15 and runs through December 31. During this time, seniors will have the opportunity to switch plans or enroll for the first time.

 Click here to read the Amundsen Study (180.08 KB)

Click here to read about the Lewin Study

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The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country’s leading pharmaceutical research and biotechnology companies, which are devoted to inventing medicines that allow patients to live longer, healthier, and more productive lives. PhRMA companies are leading the way in the search for new cures. PhRMA members alone invested an estimated $39.4 billion in 2005 in discovering and developing new medicines. Industry wide research and investment reached a record $51.3 billion in 2005.

PhRMA Internet Address: www.phrma.org

PhRMA en Español: www.nuestraphrma.org

For information on how innovative medicines save lives, visit: www.innovation.org

For information on the Partnership for Prescription Assistance, visit: www.pparx.org

For information on the danger of imported drugs, visit: www.buysafedrugs.info