Reduced Medicaid expenditures result in lower expenses for cancer-combatting medications.
Starting this year, health insurance for Medicare recipients has introduced new rules that make expensive cancer drugs more affordable. In the past, even with Medicare coverage, the cost of cancer medications rose sky-high, with patients often paying over $10,000 annually. Under the Inflation Reduction Act (IRA), the maximum out-of-pocket payment for prescriptions in a year is now capped at $2,000.
However, a recent study from the University of Pennsylvania reveals a potential solution to make these costs easier to manage. The Medicare Prescription Payment Plan (MPPP), a voluntary program, allows patients to split their annual drug costs into smaller monthly payments, rather than paying the entire amount at once.
Before the new changes, Medicare did little to protect patients from exorbitant drug costs. Patients were required to pay a deductible and about a quarter of the drug's price, as well as a percentage of the cost after reaching what is known as "catastrophic coverage." With some cancer drugs costing thousands each month, patients still faced significant bills.
The new $2,000 cap under the IRA significantly reduces these costs. Across ten medications studied by the Penn researchers, out-of-pocket cancer drug costs dropped by 82% to 90%. However, the full $2,000 payment is due upon filling the first prescription in January, which can still be a heavy burden for many patients.
The MPPP aims to address this issue by enabling patients to spread the $2,000 annually over the entire year, with monthly payments of approximately $167. If a patient enrolls in January, they will have the entire year to make these payments, making their costs more predictable and easier to budget.
The idea for MPPP originated from the same Penn research team that conducted the study. They stress the importance of timing, noting that patients must sign up early in the year to reap the most significant benefits. Doctors and cancer clinics play a crucial role as well, ensuring their Medicare patients are aware of the program and how it can help them manage their medications.
The study focused on real-world drugs used by thousands of cancer patients every year. These drugs were not rare or experimental treatments but essential cancer medications that help maintain patient health and prevent recurrences. Without assistance, these drugs were often too expensive for many, making the MPPP potentially life-changing for numerous cancer patients on Medicare.
The Medicare Prescription Payment Plan (MPPP) offers a potential solution for patients to manage their expensive cancer drug costs by allowing them to split their annual medication expenses into smaller, more manageable monthly payments. With the MPPP, patients can budget their out-of-pocket costs throughout the year, reducing the initial financial burden of filling the first prescription. Doctors and cancer clinics play a critical role in informing their Medicare patients about the MPPP and its benefits, especially for essential cancer medications that are often too expensive for many without assistance.
