Medicare Could Save $3.6 Billion by Switching to Mark Cuban Prescription DrugsA new study suggests that the government can save more than $1.7 billion by switching to cheaper generic drugs sold by Mark Cuban's Cost Plus Drug Company. The study compared the costs of 77 generic drugs sold through Cost Plus Drugs to those sold by Medicare. Medicare could save $3.6 billion in 2020 just by switching to cheaper generic drugs. This represents 37% of the total cost of 77 generic drugs in 2020.
Thearon W. Henderson/Getty Images The savings could be enormous if the US government began to use billionaire investors to purchase generic drugs for Medicare. A new study‚ published in this week's The. Annals of internal medicine if the service had been available in 2020 and the government had purchased 89 prescription drugs on the site it could have saved $3.6 billion. This is more than one-third of the initial $9.6 billion in drugs for 2020. The number of medicines has tripled over the past three years. Insider was told by Cuban that he wasn't surprised at the results of the study‚ as Medicare pricing information is publicly available. The : A 15% markup and $3 dispensing fees‚ as well as a $5 shipping charge (or $15 for expedited services) Also‚ the service does not accept insurance. This poses some problems for Medicare because federal law forbids government officials from buying drugs for Part D beneficiaries. According to Dr. Hussain Lalani‚ the study's lead author‚ it is clear that Medicare overpays for generic drugs. They could also save billions. The pharmaceutical supply chain is full of serious inefficiencies. Dr. Lalani works as a Brigham and Womens Hospital primary care physician and Harvard Medical School Fellow. Two of his coauthors have disclosed financial support from Arnold Ventures. This philanthropic group focuses on. In the end‚ $293 million was saved on acid reflux prevention medication called Esomeprazole. It is $160 for 90 tablets under Medicare‚ while it costs $17 on Cubans' site. A previous study showed that Costco members paid 43% more than Medicare for generic prescriptions. Second was $241 Million in aggregate savings from cholesterol treatment rosuvastatin. This medication costs about half the amount on Cubans' site than Medicare through Part D. Insider was told by Cuban that his company sought to identify the most effective medicines and that it came down to the first offering that his team could sell to manufacturers and distributors. The annual prescription drug spending of Americans is $365 billion. Medicare accounts for nearly a third. $115.6 billion. Generic drugs are worth approximately $23 billion in Medicare. Analyses of the sector revealed that 64 cents of every dollar spending money on generic drugs goes into the supply chain‚ which moves medication from manufacturers to patients. Half of this markup is taken up by pharmacies such as CVS or Walgreens. Read the original article on business insider