FRANKLIN LAKES, N.J., Sept. 12 /PRNewswire-FirstCall/ -- Highlighting the importance of preventive medications in reducing overall healthcare costs, Medco Health Solutions, Inc. today announced major additions to its consumer-directed pharmacy plan that promotes the use of preventive and chronic medications by lowering the out-of pocket costs of these drugs to consumers enrolled in high-deductible health plans. The new programs will be available for use in 2006 benefit packages.
Medco’s new preventive medication program capitalizes on a recently enacted Internal Revenue Service (IRS) code provision allowing tax-advantaged healthcare savings accounts (HSAs) to waive deductibles for preventive medications -- including cholesterol and blood pressure lowering drugs, osteoporosis medications, weight loss and smoking cessation agents, vaccines and immunizations, contraceptives, prenatal vitamins, prescription sunscreens, and fluoride supplements. Medco clients offering HSAs now have a mechanism to encourage use of preventive medications while maintaining compliance with IRS rules for tax-exempt contributions.
In addition, Medco clients offering any high-deductible health plan, including healthcare reimbursement accounts (HRAs), can encourage more consistent utilization of chronic medications. Coverage of preventive and chronic medications for qualifying high-deductible health plans need not be subject to the deductible, significantly reducing the cost of preventive care and chronic treatment for plan members.
“By providing this option, we hope to create an environment where the primary concern is preventing disease rather than focusing solely on treating it,” said Dr. Glen Stettin, vice president, plan management products, Medco. “Increasing the use of preventive and chronic medications can have an enormous impact in terms of reducing serious illness that often results in substantial pharmacy and medical costs for our clients.”
One area where preventive medications can have a significant impact is on heart disease. Along with stroke and other cardiovascular diseases, heart disease will cost the nation about $493.5 billion this year. Research has shown that the use of statins to lower cholesterol can reduce the risk of heart disease by as much 60 percent and stroke by 17 percent.
In developing the preventive medications program, Medco has been in close consultation with the Treasury Department and policy makers to identify medications that qualify as preventive care to ensure that the program meets the spirit and the letter of the IRS code. Based on this guidance, Medco will introduce a comprehensive set of preventive medications that clients may choose to offer members outside of the deductible, but will also allow clients the ability to tailor the medication list to best suit their member population and plan preferences. To maximize the preventive and chronic medication benefits, clients will also be able to alter their preventive and chronic medication lists throughout the year as their needs evolve.
“Our preventive medication program balances the importance of providing opportunities to further the use of these medications while moderating risk to our clients and members due to uncertainty about which medications the government will recognize as preventive for coverage,” said Dr. Stettin. “As time goes on and these guidelines are further refined by the IRS, we will be able to modify or expand our preventive medication list accordingly, helping clients take full advantage of this new plan option.”
According to the new IRS provision, preventive medications are defined as those that are used strictly for preventive purposes, such as immunizations and pre-natal vitamins; those that are taken by a person who has developed risk factors for a disease that has not yet manifested itself or has not yet become clinically apparent, such as cholesterol lowering drugs to prevent heart disease; or those that prevent the recurrence of a disease from which a person has recovered, such as the use of ACE inhibitors to reduce the risk of a patient having a recurrence of a stroke. Preventive medications do not include drugs used to treat an existing illness, injury, or condition, such as medications used to treat symptomatic illnesses such as diabetes or asthma.
To manage cases where it is uncertain if a medication is being used for preventive purposes, Medco has established a streamlined process to receive certifications from prescribers. These certifications will verify that a medication is being prescribed for preventive purposes. Proactive communication tools will also assist patients to talk to their doctor about medications that may be used for both prevention and treatment.
These new preventive medication and chronic medication options are one of many consumer-directed healthcare capabilities Medco offers its clients to ensure plan members take an active role in managing their health and controlling healthcare costs.
About Medco
Medco Health Solutions, Inc. is a leader in managing prescription drug benefit programs that are designed to drive down the cost of pharmacy healthcare for private and public employers, health plans, labor unions and government agencies of all sizes. With its technologically advanced mail-order pharmacies and its award-winning Internet pharmacy, Medco has been recognized for setting new industry benchmarks for pharmacy dispensing quality. Medco serves the needs of patients with complex conditions requiring sophisticated treatment through its specialty pharmacy operation, which became the nation’s largest with the 2005 acquisition of Accredo Health. Medco, the highest-ranked prescription drug benefit manager on Fortune magazine’s list of “America’s Most Admired Companies,” is a Fortune 50 company with 2004 revenues of $35 billion. On the Net: http://www.medco.com.
This press release contains “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that may cause results to differ materially from those set forth in the statements. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. We undertake no obligation to publicly update any forward- looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this presentation should be evaluated together with the risks and uncertainties that affect our business, particularly those mentioned in the Risk Factors section of the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission.
Medco Health Solutions, Inc.
CONTACT: Jennifer Leone of Medco Health Solutions, Inc., +1-201-269-6402,Jennifer_Leone@medco.com; or Kevin Lamb, or Janet Schiller, both of CoynePublic Relations for Medco Health Solutions, Inc., +1-973-316-1665
Web site: http://www.medco.com/
