How much Medicare could've saved with Mark Cuban's generic drug company
Medicare could have saved up to $3.6 billion in a single year if it were purchasing generic drugs as billionaire businessman Mark Cuban's online pharmacy does, says a research report published in the Annals of Internal Medicine.
Why it matters: Medicare is overpaying for some generics, the authors said.
Details: The Mark Cuban Cost Plus Drug Company (MCCPDC) launched in January, selling more than 100 generic prescriptions at the cost of ingredients and manufacturing plus a 15% margin, $3 pharmacy dispensing fee and a $5 shipping fee.
- So the researchers from Brigham and Women's Hospital and Harvard Medical School compared the price of 89 generic drugs sold by the company to the price Medicare paid in 2020.
- Medicare could have saved up to $3.6 billion, or 37% of total spending, on 77 generic drugs if it purchased generic drugs in the maximum quantity supplied by MCCPDC.
The lower drug prices from a direct-to-consumer model highlight inefficiencies in the current drug supply chain and reimbursement system, which includes wholesalers, pharmacy benefit managers, pharmacies, and insurers.