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The serious implications of the dysfunctional drug reduction system on patient health

More than 66% of Americans take prescription drugs, many of whom are elderly or people with chronic diseases such as diabetes, hypertension or high cholesterol. However, 9 million adults do not take their prescribed drugs, do not take lower amounts or do not delay the recharges due at high drug prices. Without access to affordable drugs, patient health is declining and the health system pays the price.

Over the past two decades, the prevalence of chronic diseases in the United States has skyrocketed from 7 to 8 million people every 5 years, costing the US medical system more than 1 dollars each year. The rate of type 2 diabetes has increased by almost 20% over the past decade, while deaths due to chronic kidney disease has increased by 50%. Chronic diseases are increasing and the current health system is poorly prepared to respond to a population of patients growing suffering from one or more chronic and high pathological states.

Drug reduction programs, including 340B program, in which almost half of hospitals in the United States participate, are designed to allow hospitals which serve a large demography of poor, uninsured or under-assured patients to buy medicines at reduced prices. Despite their intention to help patients allowing themselves drugs, the current system is ineffective and vulnerable to abuse, offering few advantages to patients. With the direct negative effects on patient health, the system must be reformed to make drugs accessible and affordable for everyone.

The problem with the current drug reduction system

The current medication reduction system is so disjointed and ineffective, savings are rarely transmitted to patients. Due to the absence of a centralized database or a report system, it is difficult for hospitals to follow and manage discounts or ensure compliance in several complex programs. Especially within the smaller covered entities (these), the maintenance of compliance can be restrictive, resulting in a loss or a lack of time and resources to devote to help patients to see more savings.

On the other hand, for drug manufacturers, the lack of transparent data sharing deprives them of the decision -making information necessary to plan the future and serve patients correctly. The lack of transparency also extends to patients. When patients enter 340b hospitals, they rarely know the extent of reduced prices they are supposed to receive. Since this information is not followed or disclosed to patients, savings often redistribute to hospital and its sellers.

Consequently, patients do not benefit from the deserved reduced costs that these programs promise, which decreases the support for the necessary medicines and treatments, which can result in worsening of conditions and results for vulnerable populations.

Direct effects on patient health

In simple terms, when patients do not take their drugs, their health problems aggravate and ultimately cost both the patient and the whole health system. For example, 1 of the 20 million American adults with asthma cannot afford their drugs. 18% of people suffering from asthma said that the high cost of drugs led them to skip or delay treatment. Backing drugs increases the risk of undesirable events such as asthma attacks, increasing the chances of visits linked to asthma by 60%. Not only does this affect the overall health of patients, but avoidable hospital visits cost the health system of billions of dollars each year.

Even for these, the system is specifically targeted to help, the results fail. For adults aged 98.9% over 65 who are eligible for health insurance coverage and are supposed to benefit from drug reduction systems, 4% cannot afford their prescriptions. 3% jump doses, delay the filling of the prescriptions or take doses smaller than those prescribed to reduce costs. Cardiac diseases mainly affect the elderly, with 82% of those who die aged 65 or over, and who is the main cause of death in the United States, one in eight that suffers from the disease cannot afford their medication.

Overall, when patients are not or are unable to manage their conditions by taking medication as prescribed, health problems can worsen, in charge of bankrupt patients and the health system. Diabetes, for example, is a chronic metabolic disorder often managed by oral or injectable drugs. If it is not treated, it can progress in more serious and costly conditions such as heart disease, kidney disease and even nerve lesions that can cause amputations.

Reinvent a more equitable system

The industry as a whole needs a single and transparent means of following discounts, maintaining proactive compliance and reporting the use of the reduction program, if it hopes to provide patients with the benefits and savings that medication reduction programs promise. Technology and data sharing capacities can help organizations minimize human errors, ensuring that patients receive affordable drugs without excessive and long documents and registry. Technology can prevent duplicate discounts which often prevent manufacturers from providing optimal advantages to patients.

The current drug reduction system fails vulnerable patients – those designed to help. Although well -intentioned, the savings in these programs rarely promise patients. With limited options, uninsured or under-assured patients are unable to effectively manage their conditions, leading to increased complications that add to financial pressures on them and to the medical system. The system has an urgent need for reform to improve the country’s health and well-being.

Photo: Talaj, Getty Images


Kenny Cole, Pharmd, is the main director of value delivery at Kalderos, where he provides strategic leadership, advising innovative drug pricing solutions that allow entities to collaborate transparently with drug manufacturers. Kenny is an accomplished pharmacist, with more than 20 years of experience covering all the facets of the 340B program. Working with patients, manufacturers and covered entities, Kenny includes the needs of each stakeholder and serves as a main interface between political affairs and government affairs, legal, compliance, marketing, strategy and innovation.

Before his role at Kalderos, Kenny was associate director of market access and manager of 340B strategy at Merck & Co. and director of support for policies and compliance at Apexus. Kenny is a registered pharmacist and has obtained his doctorate in pharmacy from Texas Tech University Health Science Center.

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