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Pharmacy benefit caps and the chronically ill.

Joyce GF, Goldman DP, Karaca-Mandic P, Zheng Y

RAND, Santa Monica, California, USA. gjoyce@rand.org

In this paper we examine medication use among retirees with employer-sponsored drug coverage both with and without annual benefit limits. We find that pharmacy benefit caps are associated with higher rates of medication discontinuation across the most common therapeutic classes and that only a minority of those who discontinue use reinitiate therapy once coverage resumes. Plan members who reach their cap are more likely than others to switch plans and increase their rate of generic use; however, in most cases, the shift is temporary. Given the similarities between these plans and Part D, we make some inferences about reforms for Medicare.

Published 12 September 2007 in Health Aff (Millwood), 26(5): 1333-44.
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