Public Organizations part of the total Prescription Public Cost

Published February 26th, 2024 by Devteam

If you are a Public Organization with a self-funded plan, it is expected you will be part of the 46% total expenditures of prescription public cost in 2024! The chart below shows changes in absolute spending, by payer.

Here's what CMS is projecting:

  • Public funds will overtake employer-sponsored spending. CMS projects that public funds will account for 45% of outpatient retail prescription spending in 2023, while employer-sponsored private health insurance’s share will drop to 38%. Last year, CMS projected that employer-sponsored insurance’s share would amount to 43% in 2022, so the newer forecast implies a faster decline. 
  • Individually-purchased insurance will account for 5% of drug spending. This category includes Medicare supplemental coverage and individually purchased plans, including coverage purchased through the federal and state marketplaces. CMS expects enrollment in individually purchased private insurance plans to grow, from 20.5 million people in 2013 to 32.5 million people by 2023.
  • Consumers will account for an ever-smaller share of drug spending. Consumer out-of-pocket funds—the sum of cash-paid prescriptions and consumer co-payments—will decline to 12% in 2023. This will continue a long-term trend.

Stay tuned for a viable solution on my next email…

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Healthcare cost is close to 18% of Gross Domestic Product (GDP) and a very good portion of that cost are prescription drugs. Normal inflation for the past 10 years has been 1.9% while Prescription Drugs alone have skyrocketed to over 15%.

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