Part D Costs For Patients Increase, Diabetes Costs $144 Billion, Minnesota 340B Report

Hey all,

Welcome from a very cold New York. I found it interesting to see type 2 diabetes drove $144.9 billion in spending over ten years. I wonder what the next ten years will look like now that everyone is on Ozempic. Enjoy the rundown!

Jacob Brody (Co-Founder & CEO, ZorroRX)

(USC Schaeffer Center) Medicare Beneficiaries Face Higher Drug Costs as Plans Shift to Coinsurance

A new study reveals that Medicare Part D plans have increasingly replaced fixed copayments with coinsurance, tying out-of-pocket costs for brand-name drugs to their often-inflated list prices. The share of stand-alone Part D plans using coinsurance for preferred brand drugs surged from 9.9% in 2020 to 71.9% in 2024, significantly raising patient costs—doubling expenses for medications like Eliquis and Trulicity. While insurers benefit from rebates, patients see little relief. Full Article

(JAMA) Tracking US Health Care Spending by Health Condition and County

Analyzing over 40 billion insurance claims, a JAMA study found that type 2 diabetes had the highest health care spending in the U.S. from 2010 to 2019, totaling $143.9 billion. Spending varied significantly across counties, payers, and health conditions, with differences driven more by utilization rates than price or intensity of care. These findings highlight key disparities and can inform policies to lower costs and improve access to care. Full Article

(JAMA Health Forum) Minnesota Law Brings Transparency to the 340B Drug Pricing Program 

Minnesota’s new 340B transparency law revealed that net 340B revenue in the state was approximately $630 million in its first year of reporting, with hospitals generating 95% of that total. The report highlights how most revenue comes from commercial insurers, though Medicaid and MinnesotaCare account for a significant share. While the data provide crucial insights, the report likely underestimates total revenue due to incomplete reporting of clinician-administered drugs. Full Article