For every dollar spent on over-the-counter medicines, the U.S. health care system saves $6 to $7—providing $102 billion in value each year, the Consumer Healthcare Products Association finds.
Booz & Co. surveyed 3,200 consumers for the study, which is the first to measure the aggregate cost savings of OTC medicines as used for the seven most common self-treatable conditions in the United States.
Some 240 million people rely on OTC medicines for symptomatic relief; the study evaluated how consumers would treat these seven conditions if they did not have access to OTC medicines. The total value equates to the total direct savings from avoided clinical visits and diagnostic testing ($77 billion) and use of less costly OTC medicines, rather than more costly prescriptions ($25 billion).
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"When you consider that every dollar spent on an OTC medicine saves our system 6 to 7 dollars in avoided cost, it is paramount that our policymakers do all they can to encourage consumer access to OTC medicines for self-treatable conditions," says CHPA President and CEO Scott Melville.
The study also found that by keeping the American work force healthy and at work, OTC medicines offer $23 billion in potential additional productivity benefits from doctor's office visits avoided and time not having to be away from work for medical appointments. Americans would make an additional 450 million doctor visits annually, which equates to 56,000 medical practitioners working full-time, if they didn't have access to OTC medicines and instead saw a physician to get a prescription.
"Over-the-counter medicines are people's first line of defense; it's their home health care, it's what they turn to in order to take care of themselves and their families," National Alliance for Hispanic Health President and CEO Jane Delgado says. "The availability of safe and effective OTC medicines empowers patients to take a more active role in their personal healthcare management. Access to safe and affordable OTC medicines is key to accomplishing that goal."
Melville says the study findings underscore the importance of reversing a provision in the 2010 Affordable Care Act that prohibits consumers from using their flexible spending arrangements to purchase OTC medicines without first getting a prescription. At the time this provision was enacted, an estimated 19 million working American families purchased OTC medicines.
Additional key findings from the study include:
- The total value of OTC medicines is captured throughout the entire U.S. health care system: $52.7 billion in value for employer sponsored health plans, $27.5 billion in value for government programs such as Medicare and Medicaid, and $21.7 billion in value for self-insured and uninsured populations.
- The availability of OTC medicines—off the shelf, without a prescription—provides symptomatic relief for an estimated 60 million people who would otherwise not seek treatment.
- Without affordable and accessible OTC medicines, underserved populations would depend more heavily on higher-cost medical care. One in four Medicaid patients and 1 in 10 uninsured individuals would seek treatment in an Emergency Department as their first recourse for treating a minor ailment.
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