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Healthcare Financial News - Electronic Prescribing Systems Reduce Drug Spending

Healthcare Financial News


Wednesday, December 10, 2008
Electronic Prescribing Systems Reduce Drug Spending

Clinicians using an electronic prescribing system appear more likely to prescribe lower-cost medications, reducing drug spending, according to a report in the December 8/22 issue of Archives of Internal Medicine, one of the JAMA/Archives journals.
 
In April 2004, two large Massachusetts insurers began using an electronic prescribing (e-prescribing) system, which provided community-based practices with free wireless devices and access to a secure web portal that color-coded drugs within a three-tier copayment structure. Using 18 months of data, the researchers compared the change in proportion of prescriptions for the three tiers before and after e-prescribing began, and also compared the prescription habits of clinicians using the e-prescribing system to those of control clinicians.
 
After implementation of e-prescribing, prescriptions for tier 1 pharmaceuticals (preferred drugs with lower copayments, such as generics) increased by 3.3 percent. Second- and third-tier prescriptions for brand-name drugs with higher copayments decreased accordingly among clinicians using the system. Based on average medication costs for private insurers, the researchers estimate that using such an e-prescribing system at this rate could result in savings of $0.70 per patient per month, or $845,000 annually per 100,000 insured patients filling prescriptions.

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posted on 12/10/2008 9:01:11 AM (CST)  Permalink