Health Insurance Daily

Mail Order Drugs Could Save U.S. billions -- Study

Ordering prescription drugs by mail rather than at a store pharmacy could save the nation's insurance program for the elderly and disabled up to $86 billion over 10 years, a study released on Tuesday found.

The study, released by the Pharmaceutical Care Management Association (PCMA), also found drugs-by-mail are 10 percent cheaper than those bought at retail outlets.

Lower overheard costs, bulk purchasing and fewer dispensing errors help keep mail order prices lower, according to the study conducted by health care research firm The Lewin Group.

PCMA said the difference could help Medicare save money as it implements its controversial new prescription drug benefit for 2006.

Bush administration officials now estimate the benefit, required by law, will cost $724 billion by the year 2014. Earlier estimates said it would cost $400 billion over 10 years.

For more information on this article, click on Reuters.

posted by Mike @ 3:35 PM