Summary and Conclusions Despite the ACA’s razor-thin margin of passage and ideologically narrow base of support, more Americans want to see the Act implemented than to see it dismantled, or…
Price : Quantity relationships in the employer sponsored (ESI) market To estimate price elasticity of demand for health insurance in the employer sponsored (ESI) market, we define the price of…
We expect 3Q13 health services demand growth (y/y, nominal) of 3.5%, the product of 2.1% growth in unit demand and 1.4% growth in nominal pricing (Exhibit 1). Our nominal pricing…
Background State Medicaid programs use a variety of drug pricing benchmarks to determine how much a retail pharmacy is paid when a multi-source (generic, essentially) prescription is dispensed to a…
We’ve long argued that PBM gross margins should decline[1] as a byproduct of several pressures, the most prominent being a shift away from the Average Wholesale Price (AWP) drug pricing…
This note compares the two drug acquisition cost benchmarks (Average Manufacturer Price or AMP, and National Average Drug Acquisition Cost or NADAC) that CMS intends to make public. NADAC values…
Our bearish thesis on the drug trades generally and PBMs specifically has several moving parts; of these, the effect of the AWP[1]benchmark on generic dispensing margins is key The heart…