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Impact of Sharing Manufacturer Rebates for Oral Anti-Diabetic Medications at the Point of Sale with Patients in the Commercial Market

Published: 11 March 2022 Code: GDRC202204

Detailed analysis of the potential impact of sharing negotiated rebates for brand OADs with patients enrolled in commercial market health plans on OOP costs and medicine adherence, and subsequent impacts on the following:

  1. Total per capita annual healthcare costs
  2. National projected 10-year healthcare cost savings
  3. Annual mortality

The report speciallly focuses on potential differences in response to reduced OOP costs and medication adherence among people of different race and ethnicity groups—including white, Black, Hispanic, Asian, and Other/Unknown—given evidence of the disproportionate burden of diabetes on certain subpopulations and differences in price sensitivity within those populations.

Understand insights of the sharing negotiated rebates that could reduce overall healthcare spending (inclusive of OOP and plan to spend) by $8 billion over the next 10 years, including $1.5 billion in lower patient costs, with the greatest relative impact affecting select non-white populations. These estimates are conservative and exclude approximately 20-30% of OAD users who also use insulin.

The report attempts to examine the results specific to the Native American/Alaskan Native population.

Leverage our report for key insights on the following:

  • Coverage of prescription drugs in commercial insurance plans and cost of diabetes medications on rebates or discounts provided by the manufacturers
  • Proposals to pass through rebates to patients at the point of sale and how the net prices of the brand drugs include rebates and discounts provided by the manufacturer
  • Impact of passing through negotiated rebates for OADs on OOP cost per fill and focused analysis on HDHPs and PPO
  • Impact of passing through negotiated rebates on OAD adherence and the demand sensitivity to OOP costs for prescription medicines influenced by race/ethnicity and insurance type
  • Impact of passing through negotiated rebates for OADs on annual OAD spending and the total annual OAD spending per capita before and after shared OAD rebates
  • Impact of passing through negotiated rebates for OADs on medical spending
  • Impact of passing through negotiated rebates for OADs on projected 10-year medical costs
  • Impact of increase OAD adherence on expected mortality

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