PHARMACY

Affordable Care Act expected to deliver big savings to Medicare recipients

BY Antoinette Alexander

WASHINGTON Under the Affordable Care Act, the average savings for those enrolled in traditional Medicare is expected to amount to more than $3,500 over the next 10 years — and will be even higher for seniors and people with diabetes who have high drug costs — according to the U.S. Department of Health and Human Services.

 

"The Affordable Care Act makes Medicare stronger and reduces the burden of healthcare costs on some of our most vulnerable citizens," stated HHS secretary Kathleen Sebelius. "The law improves benefits for seniors and people with beneficiaries who rely on Medicare, and ensures that Medicare will be there for current and future generations by extending the life of the Medicare Trust Fund. These benefits and savings are only possible with the continued implementation of the Affordable Care Act."

 

While the average savings is pegged at more than $3,500 over the next 10 years, the savings will be even higher — as much as $12,300 over the next 10 years — for seniors and people with disabilities who have high prescription drug costs.

The analysis, released by the Office of the Assistant Secretary for Planning and Evaluation, shows that the Affordable Care Act helps lower costs for those on Medicare by slowing the growth of cost-sharing in Medicare.

Closing the Part D coverage gap known as the "doughnut hole" will produce the greatest cost savings. Already, more than 1.8 million seniors and people with disabilities who have reached the doughnut hole in 2010 received a one-time $250 rebate check, and checks will continue to be distributed to those who enter the doughnut hole this year. Next year, people in the doughnut hole will receive 50% discounts on covered brand-name Part D prescription drugs. Also starting next year, seniors and people with disabilities on Medicare will have access to a number of recommended preventive services and annual wellness visits at no additional cost.

Although all seniors and people with disabilities in Medicare are likely to see savings, the savings will be greatest for those with costly medical conditions or high prescription drug costs. Total savings per beneficiary enrolled in traditional Medicare are estimated to be $86 in 2011, rising to $649 in 2020. For a beneficiary with spending in the doughnut hole, estimated savings increased from $553 in 2011 to $2,217 in 2020.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon’s entry would shake up the most?
PHARMACY

Walgreens, Take Care Clinics continue to play active role in diabetes care

BY Allison Cerra

DEERFIELD, Ill. One of the nation’s largest drug store chains and its retail clinic subsidiary will offer patients free blood-glucose and A1C testing in honor of American Diabetes Month.

Walgreens said Thursday that the tests will be offered at more than 1,700 stores and Take Care Clinics nationwide on Nov. 12 and 13, from 10 a.m. to 6 p.m.

As the diabetes rate in the United States reaches epic proportions — the Centers for Disease Control and Prevention predicted that diabetes will affect as many as 1-in-3 adults by 2050 — Walgreens continues to play an active role to prevent this from occurring. Both in November 2009 and this past February, Walgreens and Take Care Clinics offered free blood-glucose testing for patients. More than 200,000 people were tested during these prior events, and more than 25% tested at-risk for diabetes.

“Walgreens recognizes the need to further heighten diabetes awareness, and by offering free testing in thousands of communities nationwide, we’re providing a valuable healthcare resource that may save lives,” said Kermit Crawford, Walgreens president of pharmacy services. “Through these events and through interaction with our pharmacists and Take Care Clinic nurse practitioners and physician assistants, we’re providing the tools and information to improve the lives of those at risk for or affected by diabetes.”

Each participating Walgreens will host an eight-hour walk-in clinic offering a free blood-glucose test or, in most states, for individuals diagnosed with diabetes, a free A1C test, the company said. Walgreens also added that its pharmacists, Take Care Clinic nurse practitioners and physician assistants are available for patient consultations. In most locations, they also will administer the tests.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon’s entry would shake up the most?
PHARMACY

Walgreens chief: We want to own ‘well’

BY Antoinette Alexander

DEERFIELD, Ill. The healthcare landscape is changing. There’s a new value-driven consumer who has emerged and, in light of this, retail pharmacy giant Walgreens is in the midst of an evolution into “a retail health and daily living store” and is on a mission to “own well.” That was a key message that an optimistic Greg Wasson, Walgreens president and CEO, had for Wall Street during the company’s Analyst Day conference on Thursday in Chicago.

 

“As patients gain more access to healthcare information and they become more responsible for making their own healthcare decisions, patients are indeed becoming more shoppers of health care,” Wasson said. “And, frankly, that trend is good for us.”

 

 

The trend puts the company — which has more than 70,000 providers and serves 6 million patients each day — squarely at the intersection of the retail and healthcare industries. And if you ask Wasson, that’s a great place to be. “We are really evolving to ‘a retail health and daily living store.’ Our vision is to become ‘My Walgreens’ to everyone in America,” Wasson said. One may consider this a lofty goal, but Wasson was quick to remind analysts that two-thirds of all Americans live within 3 mi. of a Walgreens location.

 

 

In addition to the important work the company is doing to position itself as the “new healthcare provider,” leveraging its 8,000 points of care and the health professionals in them — including 26,000 certified immunizing pharmacists, a major focus for the company as it seeks to redefine the role of the community pharmacists in the national delivery of health care — Walgreens is equally focused on transforming its stores to be more than just another drug store on the corner. Hence, the emphasis on “daily living store.”

 

 

That transformation began with the rollout of the company’s Customer Centric Retailing, or CCR, store format — now in 2,200 of its stores — and has continued with the expansion of its urban prototype and the newly announced focus on fresh foods. “We have tremendous opportunity in the front-end of our stores,” Wasson said.

 

 

Wasson kicked off the all-day conference, which also included comments from several other senior executives who highlighted milestones and growth plans for Walgreens. As millions of Americans gain coverage under healthcare reform and further stress an already overburdened healthcare system, Walgreens — which operates more than 7,600 retail stores, nearly 730 worksite and retail-based health clinics and more than 100 medical campus pharmacies — clearly is working to strengthen its foothold along the frontlines of health reform with a focus on prevention and management of chronic disease.

 

 

“We now have 30 million more Americans who are going to gain coverage, and that is certainly going to challenge the system; we have an aging population … 1-in-3 Americans in the next 10 years will turn 65; we have a higher incidence of chronic and complex diseases as people age; and, to top that off, we have a shortage of primary care physicians, so there are threats and opportunities in health care,” Wasson said. “The threats are the fact that all of us in health care have to have a relentless focus on cost reduction, and I can assure you that we do. The opportunities, though, that arise are more focused on the prevention and management of chronic disease, and that’s where we are headed.”

 

 

What this means is that patients will see a continued expansion of scope of services to ensure that the company’s providers are viewed as a critical link in the screening and prevention of chronic conditions. “What we have and what we are building is an integrated network of healthcare providers, and that is built on the foundation of our 26,000 retail pharmacists, who we like to refer to as the new healthcare provider,” Wasson said.

 

 

Wasson also provided an update on the company’s three core strategies: Leveraging its store network, enhancing the customer experience, and reducing costs and boosting productivity. Among the milestones mentioned:

  • Walgreens slowed the pace of new store openings from 9% growth in 2008 to 4.2% in 2010. Going forward, the company expected growth of between 2.5% and 3% in fiscal 2011;
  • Over the last two years, the company has acquired more drug stores than any other time in the company’s history. As a result, Walgreens now is No. 1 or No. 2 in 226 markets;
  • Since launching its Customer Centric Retailing initiative in 2008, the company will have converted more than 2,000 stores to the format by the end of 2010 and plans to finish the rollout of 5,500 stores by the end of 2011; and
  • Walgreens is expanding its infusion pharmacy services as evidenced by the September announcement to acquire substantially all of the assets of Omnicare’s home infusion business.

 

 

“We are going to skate to where that puck will be, and that’s more prevention and management of chronic disease,” Wasson said. “And we want to own the strategic category of ‘well.’”

 

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon’s entry would shake up the most?