Thursday, March 23, 2006
Medicaid and Medicare

New Medicare Drug Plans Restrict Access to Important Drugs

A new report released by Rep. Waxman is the first detailed analysis of the use of restrictive tactics by Medicare drug plans.

Based on a Medicare database, a phone survey of Medicare drug plans conducted in Rep. Waxman's congressional district, and the Medicare.gov website available to seniors, the report finds that the use of prior authorization requirements, step-therapy provisions, and volume limits by the Medicare drug plans is widespread, but disclosure of their terms is virtually nonexistent.

Specifically, the report finds:

  • Prior authorization requirements, step-therapy provisions, and volume limits by the vast majority of Medicare drug plans restrict access to formulary drugs. The Medicare data show that 97% of plans place either prior authorization or step therapy requirements on at least one of the 100 most popular drugs, with the average plan restricting access to over 10% of the popular drugs listed in its formulary.
  • Medicare drug plans are unable to describe plan restrictions accurately. Over two-thirds of the Medicare drug plans contacted in the phone survey were unable to describe accurately how the prior approval, step therapy, or volume limits worked with their particular plan.
  • Medicare drug plans provide erroneous or conflicting information about restrictions. A number of Medicare drug plans provided information that was erroneous or misleading or conflicted with other information provided by the plan in the phone survey.