CBO Study Shows Access to Lower Cost Medication a Critical Factor in Healthcare Spending

by Gabriel Levitt, Vice President, PharmacyChecker.com and Sam Werbalowsky, Pharmacychecker.com | Jan 25, 2013 | Drug Prices, Medication non-adherence, Saving Money on Prescription Drugs, Skipping medications

High prescription drug costs make Americans sicker and contribute to our national budget woes, according to a report by the Congressional Budget Office (CBO) released at the end of last year. The report serves as a reminder to always take your prescribed medicines. We view this study as further evidence that access to affordable medication from reputable international online pharmacies improves the health of Americans and decreases healthcare spending.

To put it simply, as consumers’ out-of-pocket drug costs rise, they are less likely to take their medicine as prescribed, which leads to more medical services and increased healthcare spending. The CBO report tells us that the converse follows: when out-of-pocket prescription costs fall there is less need for medical services, and as a result less healthcare spending.

The CBO’s report is based on an analysis of relatively new studies that have tracked out-of-pocket prescription drug costs and overall healthcare spending in employer and government-based health insurance programs. The result is that CBO has now internalized out-of-pocket prescription drug costs in its methodology for calculating the effects of legislation affecting drug costs. This means if a new bill aims to bring down prescription drug prices in the United States or through drug importation, CBO would calculate how many more prescriptions would be filled and estimate the resulting decrease in healthcare spending.

It is critical that our elected leaders and government officials take this into account when considering new laws or taking actions that affect access to affordable medication .Just yesterday, Minnesota U.S. Senators Al Franken and Amy Klobuchar re-introduced a bill, The Medicare Prescription Drug Price Negotiation Act, to enable the federal government to negotiate lower Medicare drug prices with drug manufacturers. Such legislation would most certainly lower drug costs, improve health, and decrease the taxpayer burden on healthcare spending