Medicare Part B Reimbursement of Prescription Drugs . Other Factors Affecting Drug Prices


Another, and much larger, impact on the Medicare Part B reimbursement received by health care providers has been the shift from branded drugs to generic drugs. For example, between 2002 and 2013, while the overall market for sterile injectable drugs increased by 39 percent, the number of units sold by generic drug manufacturers increased by 57 percent.20 This increase in sales volume has been accompanied by an even greater increase in sales revenue. According to IMS Health sales data, the total sales revenue for generic sterile injectable products grew from $2.0 billion in 2002 to $7.8 billion in 2013, a 200 percent increase in real dollars after deflating prices with the CPI-U. The shift from branded drugs to generic drugs has also affected other dosage forms covered by Medicare Part B.21, 22

This shift had very large effects on both total reimbursements and on the dollar value of the 6 percent margin received by providers, since providers would often have been receiving reimbursements based on the branded drug price while acquiring generic drugs. 22

View full report


"ib_mprpd.pdf" (pdf, 216.76Kb)

Note: Documents in PDF format require the Adobe Acrobat Reader®. If you experience problems with PDF documents, please download the latest version of the Reader®