# Potential Cost Savings in Medicare Part D for Otolaryngologic Medications

## TL;DR

This study explores cost savings and losses in Medicare Part D by comparing medication costs through a direct-to-consumer model for otolaryngology prescriptions.

## Contribution

The study introduces a novel analysis of Medicare Part D cost efficiency using a direct-to-consumer drug procurement model for otolaryngologic medications.

## Key findings

- 45.3% of the top 75 otolaryngologic medications by spending were unavailable through MCCPDC.
- Antibiotics consistently showed potential cost losses via MCCPDC procurement.
- Direct-to-consumer models may offer savings for some medications but not others.

## Abstract

Our study analyzes potential savings and losses for Medicare Part D using Mark Cuban Cost Plus Drug Company (MCCPDC) as an alternative medication procurement method for the 75 most commonly prescribed medications by otolaryngologists in 2022. Monthly standard MCCPDC costs and imputed Medicare Part D monthly costs for each prescription medication were compared. Our results indicated heterogenous efficiency of sourcing medications through MCCPDC due to some potential cost savings but other substantial losses. 45.3% of the top 75 otolaryngologic prescription medications sorted by total spending were not available on MCCPDC, indicating the need for more affordable access to expensive medications. Additionally, antibiotics consistently displayed potential losses through MCCPDC procurement, suggesting Medicare’s ability to achieve discount pricing for particular drug categories. Hence, providers should consider utilizing direct-to-consumer (DTC) models on a case-by-case basis, and future cost-saving investigations including additional DTC models should be conducted.