The Triumph of Part D
This article was originally published in RPM Report
The US prescription drug market remains anemic, but don't blame the federal government. The Medicare Prescription Drug Benefit that began in 2006 is the only reason there has been any growth in the retail sector. No wonder industry is so eager for health care reform.
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In the run up to its launch in 2006, Part D was politically controversial and there was considerable skepticism about the logistical challenges for implementation. That experience is reassuring for implementers of the Affordable Care Act – but advocates should be wary of relying too much on parallels to Part D.
When it comes to Medicare Part D, the brand counts at least that’s what some of the biggest plans have concluded. From Humana/Walmart to CVS/Member Health, the drug benefit is increasingly a story of branding, both in the selling proposition to consumers and in the branding of certain plans as underperformers by CMS
Pharma is looking at some very achievable business targets from the pending health care reform legislation. It’s not going to take too many new scripts from the people who currently do not have insurance for pharma to get a return from the new tax and rebate payments that are part of its support for ObamaCare.