There are a number of factors that work against a more efficient drug distribution system, including industry privacy agreements that mask financial incentives. (Image: Shutterstock)
The current supply chain for pharmaceuticals has built-in incentives to include low-value, high-cost drugs, a new study finds. For employer-sponsored plans and other purchasers, wasteful spending on such drugs represent significant costs that could be reduced if purchasers pushed for more efficiency.
The study by the Commonwealth Fund, looked at drug utilization data from 15 self-insured plan sponsors, including 13 members of the Pacific Business Group on Health (PBGH) and estimated savings from cutting back on low-value, high-cost drugs.
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