Friday, August 15, 2014

Pricey compounded drugs come under scrutiny--The first quarter of 2014 spending on compounded drugs grew from $171 million compared to $28 million in the first quarter of 2012. That means a lot of compounding pharmacists and pharmacies are raking in the dough

What do a $1,600 custom-made diaper rash treatment, $8,500 scar-reduction cream and a $2,300 pain-relieving salve all have in common? Their price tag, and more often than not, healthcare insurers are left to pick up the expensive bill for compounded medicines, reports the New York Times.

Certain insurers like Harvard Pilgrim are taking steps to reign in the spending on compounded drugs. Last year, Massachusetts's second-largest insurer decided to stop covering compounded drugs because it said the costs and safety concerns posed too great of a risk, FierceHealthPayer previously reported.
Pharmacy benefits managers, like those who own UnitedHealth Group and Blue Cross and Blue Shield plans, said they will no longer pay for more than 1,000 ingredients used in compounding, noting that such spending grew to $171 million in the first quarter of this year, compared to the $28 million in the first quarter of 2012, notes the Times.
There are many factors that attribute to the rising costs of ingredients used to create the drugs. For one, doctors are moving away from traditional drugs, like painkillers, and are using ointments and creams, noting it provides a more direct relief without entering the bloodstream, according to the Times.
What's more, there is little evidence that such creams contain safe ingredients. Many states are looking to control spending on compounded drugs in workers' compensation as well--Ohio set a limit of $600 per prescription.
 
continue to read here

No comments: