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Medicare Spent $3 Billion Giving People Extra Drugs: Report

Medicare Spent $3 Billion Giving People Extra Drugs: Report

Summary

A report found that Medicare spent $3 billion on unnecessary drug refills from 2021 to 2023. These extra medications often came through mail-order pharmacies and were not always needed by patients. The loosened refill rules during the pandemic contributed to this issue.

Key Facts

  • Medicare spent $3 billion on unnecessary drug refills from 2021 to 2023.
  • The Wall Street Journal reported that this wastage happened largely due to mail-order pharmacies.
  • Mail-order pharmacies processed only 9% of prescriptions but were responsible for 37% of the excess refills.
  • Relaxed refill rules during the COVID-19 pandemic made it easier for patients to receive automatic refills more frequently.
  • Major mail-order pharmacies are owned by large companies like UnitedHealth, Humana, and Aetna.
  • Medicare's annual drug benefits cost exceeds $100 billion.
  • These excess refills included over 30 extra days of the diabetes drug Jardiance, costing $111 million.
  • Insurers report stricter refill blocking measures in place since 2024.
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