Everyone probably knows what brown bagging is. That’s when you pack a sandwich in a brown paper bag and take it to work rather than joining your spendthrift colleagues, when they go out for lunch or order takeout. Sometimes it saves you the time of going out to eat but mostly it saves you the expense of a meal prepared by a restaurant. A sandwich, an apple and a container of yogurt that costs you less than $2 to pack at home substitutes for a $12 takeout meal. In the hospital industry the practice of brown bagging is called white bagging. That is when your insurance company refuses to pay the hospital’s 600% markup for costly oncology drugs and has them delivered to the hospital for patients’ infusions (or patient picks them up at the specialty pharmacy)
Category: Health Economics & Costs
How Medicare Advantage Plans Cover Drugs
Average annual deductibles in independent prescription drug plans (PDPs) are roughly four times higher than those in Medicare Advantage plans (MA-PDs) ($398 versus $90). Average monthly premiums for PDPs are also roughly 3.5 times higher than in MA-PDPs ($40 versus $11). Similarly, MA-PDP formularies cover a higher share of potentially coverable Part D drugs than PDPs (89 percent compared to 83 percent). At the same time, MA-PDPs impose utilization management requirements (such as prior authorization and quantity limits) on formulary covered drugs at a lower rate, relative to PDPs.
Source: Benedic N. Ippolito and Boris Vabson, The Impact Of Medicare Advantage Growth On Part D Competition, Costs, and Coverage. (AEI)
Wednesday Links
- Judge: the federal government cannot conspire with social media to limit free speech.
- Expanded Child tax credit: Neither labor force participation nor total hours worked changed significantly during the months when benefits were increased and work requirements were removed.
- Study: Medicare enrollment improves financial health.
- About 39 percent of US workers are engaged in nontraditional work (freelancing, contracting, gig, and self-employment).
Medical Care Credit Cards Benefit Patients and Providers
My wife’s former hair stylist was an immigrant struggling with the loss of income after the Covid lockdown. One day the stylist explained she needed eye surgery she could not afford. My wife told her about CareCredit, a company that provides consumer credit for medical care and veterinary care. The next time they met the stylist thanked her. She had scheduled her eye surgery after getting approved by CareCredit. The stylist said she would have up to a year to pay off her surgery interest free.
The anecdote may sound like a story with a happy ending but not according to Senator Elizabeth Warren and some of her Democratic colleagues.