Birth Control Costs On Campus Double Thanks to Medicaid
| Mon Mar. 26, 2007 10:00 AM PDT
The cost of birth control sold at student health centers on college campuses nationwide are skyrocketing and women can thank Medicaid for costs that have now doubled from around $10 a pack to $22 for a month's worth of pills. The price hike comes after of a change in a Medicaid rebate law that means pharmaceutical companies are no longer providing large discounts on some drugs to universities, including, surprise, contraceptives.
Previously, pharmaceutical companies often sold drugs at deep discounts to colleges, the discounts made business sense for the companies in that they created brand loyalty for the company, plus they didn't count against the drug makers in a formula calculating rebates they owed states to participate in Medicaid.
But the 2005 Medicaid bill, which went into effect in January, means that drug manufacturers who provide any discounts to colleges mean drug manufacturers need to pay more to participate in Medicaid. The result, fewer companies are offering discounts, meaning the pills are less affordable.
About 40% of female undergrads use oral contraceptives, according to a recent survey conducted by the American College Health Association. Many colleges tried to maintain costs for contraceptives for a few months by buying in bulk before the new law took effect, but now their stocks are low and they have had to increase prices.
ACHA said that the Medicaid bill should have included an exemption for companies to provide prescription drugs to college health centers and the group has supported a proposal to change the law. And for those who are anti-contraceptives, know that this rule change affects all discounts. For example, for the 16% of college students who have been diagnosed with depression—a 56% increase since 2000— their prescription costs are up as well.
Continues Below
Continued From Above
Comments
Submitted by Wayne C. Shields & James Trussell, PhD (not verified) on Tue Mar. 27, 2007 8:37 AM PDT.
Birth control prices on college campuses have increased upwards of 100% due the pharmaceutical industry's response to actions undertaken by Centers for Medicare and Medicaid Services (CMS). No matter who is at fault ? CMS or the pharmaceutical industry ? the health insurance industry, both private and public, should take note. Preventing pregnancies is far cheaper than the medical costs associated with unintended pregnancies.
Recent published research shows that the direct medical costs of unintended pregnancies in the United States were estimated to be $5 billion per year, while direct medical cost savings due to contraceptive use were estimated to be $19 billion[1].
Both Medicaid and the private health insurance industry are likely to spend significantly more for unintended pregnancies than they would have spent on contraceptive coverage. An ounce of prevention, indeed!
Submitted by Wayne C. Shields & James Trussell, PhD (not verified) on Tue Mar. 27, 2007 8:37 AM PDT.
Birth control prices on college campuses have increased upwards of 100% due the pharmaceutical industry's response to actions undertaken by Centers for Medicare and Medicaid Services (CMS). No matter who is at fault ? CMS or the pharmaceutical industry ? the health insurance industry, both private and public, should take note. Preventing pregnancies is far cheaper than the medical costs associated with unintended pregnancies.
Recent published research shows that the direct medical costs of unintended pregnancies in the United States were estimated to be $5 billion per year, while direct medical cost savings due to contraceptive use were estimated to be $19 billion[1].
Both Medicaid and the private health insurance industry are likely to spend significantly more for unintended pregnancies than they would have spent on contraceptive coverage. An ounce of prevention, indeed!
Submitted by Wayne C. Shields & James Trussell, PhD (not verified) on Tue Mar. 27, 2007 8:37 AM PDT.
Birth control prices on college campuses have increased upwards of 100% due the pharmaceutical industry's response to actions undertaken by Centers for Medicare and Medicaid Services (CMS). No matter who is at fault CMS or the pharmaceutical industry the health insurance industry, both private and public, should take note. Preventing pregnancies is far cheaper than the medical costs associated with unintended pregnancies.
Recent published research shows that the direct medical costs of unintended pregnancies in the United States were estimated to be $5 billion per year, while direct medical cost savings due to contraceptive use were estimated to be $19 billion[1].
Both Medicaid and the private health insurance industry are likely to spend significantly more for unintended pregnancies than they would have spent on contraceptive coverage. An ounce of prevention, indeed!
