Reducing men’s health drug costs: exploring the impact of the Mark Cuban Cost Plus Drug Company model on Medicare savings
In 2022, national health expenditures in the United States were estimated to have grown from 2.7% to 4.3% and increased further in 2023, reaching an estimated $5.2 trillion. Medicare alone, in 2021, accounted for 21% of national health care spending, amounting to $689 billion in total Medicare ex...
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| Main Authors: | , , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
MRE Press
2024-12-01
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| Series: | Journal of Men's Health |
| Subjects: | |
| Online Access: | https://oss.jomh.org/files/article/20241230-446/pdf/JOMH2024092701.pdf |
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| Summary: | In 2022, national health expenditures in the United States were estimated to
have grown from 2.7% to 4.3% and increased further in 2023, reaching an
estimated $5.2 trillion. Medicare alone, in 2021, accounted for 21% of national
health care spending, amounting to $689 billion in total Medicare expenditures.
The Mark Cuban Cost Plus Drug Company (MCCPDC) Model offers a solution by
providing prescription medications at lower costs. The objective of this study
was to assess the effectiveness of the MCCPDC model in reducing men’s health drug
costs compared to Medicare Part D. A comprehensive analysis was conducted on the
“Men’s Health” drugs available through the MCCPDC. Prices, including dispensing
and shipping fees, were collected for the minimum quantity (30 count) and maximum
quantity (90 count) from the MCCPDC. Unit costs and total savings were
calculated, and unit prices for 30 count and 90 count prescriptions were compared
between Medicare and the MCCPDC. Of the 15 medications in our sample, Medicare’s
expenditure amounted to $1.8 billion, with the MCCPDC displaying lower prices
overall compared to Medicare. Evaluating 30 count prescriptions, 11 of 15
(73.3%) men’s health drugs resulted in total cost savings of $1.1 billion. For
90 count prescriptions, all 15 drugs yielded savings totaling $1.3 billion. Our
study findings highlight substantial potential for cost savings if Medicare were
to adjust its contracted rates to those currently set by the MCCPDC. We recommend
that healthcare providers include the MCCPDC in patient counseling sessions to
educate patients about accessing medications at lower prices. Integrating the
MCCPDC as a resource can contribute to significant savings and improve medication
affordability. |
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| ISSN: | 1875-6867 1875-6859 |