US Insurer Blames Branded Drugs for $2B Annual Spending 'Waste'

"Unnecessary" use of higher-priced medications accounted for much of the $2.1 billion in wasted pharmacy-related spending for U.S. workers' compensation payors, according to a report released by Express Scripts.

According to the report, the money was wasted because equivalent-quality, lower-cost generic alternatives were available but were not prescribed, according to Express Scripts. The report said another $107 million was wasted last year through use of out-of-network pharmacies and third-party billing for such benefits.

The report said $40 million was wasted from the use of more expensive delivery channels, such as retail pharmacies, instead of home delivery for long-term medications for injured employees.

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