ARMED FORCES NEWS
PHARMACY COSTS SOAR
April 11, 2008

The Defense Department's prescription drug costs have tripled between 2000 and 2006 and are expected to reach $15 million by 2015, largely because of demand for prescriptions available at retail pharmacies, according to a report by the Government Accountability Office (GAO). TRICARE-covered prescriptions cost less at retail pharmacies than at military treatment facilities or by mail order, because the former at the time were not subject to federal pricing arrangements, which tend to lower costs. The GAO hailed a change which now subjects drugs from retail pharmacies to the same pricing arrangements, but said DoD needs to monitor closely this and other measures intent at reining in skyrocketing drug costs. Included are encouraging patients to use lower-cost medications from TRICARE's formulary, offering incentives to switch to mail-order prescriptions, and changing co-payment policies to encourage patients to buy medications from cost-effective sources. For more information, visit http://www.gao.gov/docsearch/repandtest.html on the GAO Web site.

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