By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    healthcare cybersecurity
    4 Helpful Tips on How to Protect Your Medical Practice Against Cyber Attacks
    October 24, 2021
    Health Check Diagnosis Medical Condition Analysis Concept
    6 Health Woes With Online Remedies
    January 19, 2022
    Eight Things Men Should Know About the Male Menopause
    Eight Things Men Should Know About the Male Menopause
    April 24, 2022
    Latest News
    Beyond Nutrition: Everyday Foods That Support Whole-Body Health
    June 15, 2025
    The Wide-Ranging Benefits of Magnesium Supplements
    June 11, 2025
    The Best Home Remedies for Migraines
    June 5, 2025
    The Hidden Impact Of Stress On Your Body’s Alignment And Balance
    May 22, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    healthy nursing school habits
    Healthy Habits for Nursing Student Nursing School Students
    May 24, 2024
    High Deductables
    High-Deductible Insurance and Rising Bad Debt
    July 24, 2015
    How People Are Taking Advantage of Health Deals in the Recent Recession
    February 5, 2021
    Latest News
    Top HIPAA-Compliant Messaging Apps for Healthcare Teams
    June 25, 2025
    When Healthcare Ends, the Legal Process Begins: What Families Should Know About Probate and Medical Estates
    June 20, 2025
    Preventing Contamination In Healthcare Facilities Starts With Hygiene
    June 15, 2025
    Strengthening Healthcare Systems Through Clinical and Administrative Career Development
    June 13, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Drug Co-Pay Cards: Can We All Just Get Along?
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Policy & Law > Health Reform > Drug Co-Pay Cards: Can We All Just Get Along?
BusinessHealth Reform

Drug Co-Pay Cards: Can We All Just Get Along?

DavidEWilliams
Last updated: August 3, 2011 8:09 am
DavidEWilliams
Share
3 Min Read
SHARE

The editor of Drug Benefit News, Anthony Vecchione asserts (Copay Cards Could Be Win-Win If All Sides Work Together). I really don’t think so. In fact, my home state of Massachusetts is the only one that’s got things right. Here the cards are banned outright. Vecchione’s argument:

The editor of Drug Benefit News, Anthony Vecchione asserts (Copay Cards Could Be Win-Win If All Sides Work Together). I really don’t think so. In fact, my home state of Massachusetts is the only one that’s got things right. Here the cards are banned outright. Vecchione’s argument:

When it comes to the topic of drug companies’ copayment cards, the consensus among PBMs and health insurers is pretty clear. The discount cards, issued by pharmaceutical companies to defray patients’ out-of-pocket costs, interfere with payers’ ability to manage trend and the formulary process.

But because it’s unlikely that copay cards will disappear anytime soon, some industry analysts are calling on PBMs, payers and employers to look at copay cards as a multi-dimensional issue where there are opportunities for a win-win.

More Read

The Department of Health and Human Services Makes Effort to Increase PCIP Rolls
Why Outsourcing Is a Brilliant Strategy for Healthcare
3 Timely Factoids to Make You a Smarter Marketer
Can a Mandated Health Benefit Violate a Corporation’s Religious Freedom?
5 Excellent Qualities Of A Good Healthcare Leader

He reports on a webinar presentation by George Van Antwerp and Sean Brandle suggesting that it’s too difficult for payers to resist the cards completely, so instead they should seek opportunities to use them to increase adherence, which may drive up drug costs but hold down overall medical costs.

I’m not buying it. The only reason pharmaceutical companies issue these cards is to circumvent financial incentives put in place by health plans to encourage the use of less expensive alternatives, whether branded or generic. The cards are a good value for drug companies because they remove the price signal from the patient, driving up third-party reimbursement. The result is higher pharmacy costs, which drive up total medical costs and health plan premiums.

As the article describes, payers have a variety of tools in hand to counteract the use of these cards, but they are only partially effective, administratively complex and may cause collateral damage to members who don’t use the cards. These include closed formularies, higher copay differentials among drug tiers, “member-pays-the-difference” programs, step-therapy, member education, and contract language to prohibit coupon use. What he have here is a prime example of administrative waste in the system: moves and countermoves designed to distort the system on the one hand and straighten it out on the other.

The words “costly” and “government regulation” are frequently used together, and rightfully so. But a regulation banning drug co-pay cards is not costly. In this case it reduces administrative and medical costs without harming patients. In this case Massachusetts –the only state in the country that bans these cards– has it exactly right.


TAGGED:drug co-pay cardshealthcare policypharmaceuticals
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

women dental care
What Is a Smile Makeover and How Much Does It Cost?
Dental health
June 30, 2025
HIPAA-Compliant Messaging Apps
Top HIPAA-Compliant Messaging Apps for Healthcare Teams
Global Healthcare Policy & Law Technology
June 25, 2025
recovering from injury
Rebuilding After Injury: Path to Physical and Emotional Recovery
News
June 22, 2025
scientist using microscope
When Healthcare Ends, the Legal Process Begins: What Families Should Know About Probate and Medical Estates
Global Healthcare
June 18, 2025

You Might also Like

FDA Approves Roche/Genentech Drug Erivedge to Treat Advanced Skin Cancer Not Treatable with Surgery

February 1, 2012

Headlines I Wish I Hadn’t Seen

May 26, 2011

Why I Don’t Adhere to Evidence-Based Medical Care

August 13, 2013

Liberating Structures to Create Enduring Culture Change: The Superbug Story

June 4, 2012
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?