Old Dogs…New Tricks


If you can teach an old dog a new trick, then rest assured dispensers can also squeeze a little extra profit from old reliable scripts.


Writing in The New York Times Business Day, Barry Meier reports how some physicians are exploiting loopholes and developing new strategies to stay one step ahead of state rules to control drug costs.


For example, Cyclobenzaprine is a commonly prescribed muscle relaxant used to treat back strains and other similar injuries. Historically, it is dispensed in fee-controlled 5mg or 10mg pills. Guess what? If a physician decides to dispense in a new 7.5mg dosage, they can charge as much as five times more.


By providing “novel dosages” of common drugs, some physician dispensers are able to create their own unique “average wholesale price” that bears no relationship to the AWP of similar forms of the prescription medicine.


Regulators can only do so much. The entrepreneurial spirit of some rogue compounders/manufacturers/dispensers will constantly search for exceptions and unique opportunities to create profits.


There are ways to combat this abuse. Aggressive pharmaceutical UR, in conjunction with limited provider/pharmacy networks can reduce your costs.


We have a few tricks of our own.


Call us. We can do better.

William Faris, JD
Chief Executive Officer

Posted in Medical Cost Containment, OMCA