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MEDTECH A total of $661.8 million could be saved by utilizing MCCPDC for seven common oncology drugs.
A recent study published in the Journal of Clinical Oncology indicates that utilizing the Mark Cuban Cost Plus Drug Company (MCCPDC) for the purchase of seven top oncology drugs could save Medicare 78.8%, translating to hundreds of millions of dollars in savings for beneficiaries and taxpayers. MCCPDC, a public benefit corporation, offers a transparent pricing model for generic drugs, adding only a minimal markup and fee. The study’s findings highlight a critical area for potential cost reduction within the Medicare system.
Key Points:
- MCCPDC sells generic drugs with a 15% markup, a $3 pharmacy fee, and no more than $5 shipping per prescription.
- Range of total estimated savings: $228.1 million (56.1%) to $2,154.5 million (92.4%) depending on the percentile of Medicare Part D expenditures per unit (MPDEPU).
- Median savings for specific drugs ranged from $1.2 million (anastrozole) to $338 million (abiraterone).
- Exceptions were found with anastrozole, letrozole, and tamoxifen where savings were not significant.
Additional Points:
- Researchers used 2020 Medicare Part D spending dashboard, Q3-2022 formulary prices, and Q3-2022 MCCPDC prices for the comparison.
- The study recognized limitations including assumptions about perfect compliance with pricing and the use of 2020 drug utilization rates with 2022 prices.
Conclusion:
- The findings of this study underscore the potential for significant savings in oncology drug costs within Medicare through alternative procurement models like MCCPDC, which could impact taxpayers and beneficiaries alike.
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“This really emphasizes the fact that Medicare is overpaying for medications, and it’s coming out of all of our pockets.”
Ruchika Talwar, MD
Study Author/Fellow in the Urologic Oncology Fellowship
Vanderbilt University Medical Center
