Managed Care - December 2008 - (Page 46)

THE FORMULARY FILES A few specialty drug prices fall — all generics Specialty drugs are the most expensive drugs on the market, with prices that can range from $5,000 to more than $30,000 per year, and in only a few cases are the prices falling, according to a report from the AARP Public Policy Institute, which looked at 144 specialty drugs widely used by Medicare Part D beneficiaries. “Trends in Manufacturer Prices of Specialty Prescription Drugs Used by Medicare Beneficiaries” identifies the six specialty drugs with the largest decreases in manufacturer price, ranging from 14.3 percent to 47.5 percent. AARP defines specialty drugs as prescription medications that are used to treat complex chronic conditions and that require special administration, handling, and care management. In all, there were 11 specialty drugs that decreased in price. All the products whose manufacturer price declined for 2007 were generics. Overall, manufacturers have raised prices of specialty prescription drugs since the implementation of the Medicare drug benefit in 2006. The average increases in 2006 and 2007 (7.9 percent and 8.7 percent, respectively) were substantially higher than in the previous two years (5 percent in 2004 and 6.8 percent in 2005). Rising and falling specialty drug prices Largest decreases –47.5% –20.9% –18.7% –17.5% –16.7% –14.3% General inflation (2.9%) Ceftriaxone (1 gm injection) Haloperidol decanoate (100 mg/ml injection) Haloperidol decanoate (50 mg/ml injection) Promethazine (25 mg/ml injection) Ipratropium (0.02% solution) Heparin sodium (5000 U/ml injection) Largest increases Cyanocobalamine (1,000 mgcg/ml injection) Oral transmucosal fentanyl citrate (600 mcg lozenge) Oral transmucosal fentanyl citrate (800 mcg lozenge) Oral transmucosal fentanyl citrate (1,200 mcg lozenge) Oral transmucosal fentanyl citrate (1,600 mcg lozenge) Thalidomide (200 mg capsule) Thalidomide (50 mg capsule) Thalidomide (100 mg capsule) Sevelamer hydrochloride (800 mg tablet) Bosentan (62.5 mg tablet) Bosentan (125 mg tablet) 20.9% 17.7% 17.7% 36.4% 56.0 % 47.0% 46.9% 46.9% 46.9% 46.5% 46.0% Source: AARP Public Policy Institute. Rx Watchdog Report. Trends in Manufacturer Prices of Specialty Prescription Drugs Used by Medicare Beneficiaries, 2004 to 2007 46 MANAGED CARE / DECEMBER 2008

Table of Contents Feed for the Digital Edition of Managed Care - December 2008

Managed Care - December 2008 Editor's Memo Contents Legislation & Regulation News and Commentary Medication Management Compensation Monitor ICD-10 Offers Huge Opportunity, Challenge Part D at a Crossroads Plans Can Weather the Financial Crisis DM vs. Medical Home? Tackle Prediabetes Reasonable Approach to Morning Sickness Formulary Files Tomorrow's Medicine Outlook

Managed Care - December 2008

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