A recent Forrester study showed continued growth in the number of times consumers using the DestinationRx Drug Compare™ tool switched from higher to lower-cost options – reflecting a growing affinity for the technology and underscoring its value in driving greater savings for consumers, plans and payers alike.
Conversions were defined as choosing a lower-cost option, either via a therapeutic alternative or a different retailer. The rate of conversion nearly doubled from the first to fourth quarters of 2007, with a total of 440,000 conversions occurring in the fourth quarter alone.
Within the study, two groups of consumers were examined to determine the effectiveness of the Drug Compare tool. The group using the tool showed a 14% conversion rate, compared to only 9% conversion in a control group of similar average age that did not use the tool. This 5% difference in conversion rate, at an annual out-of-pocket savings of $171 per drug – assuming an average of one drug per covered life – translates into $8.6 million in savings per million lives covered. And the true benefit of lower-cost alternatives is very likely to be significantly higher for the senior population due to higher drug usage.
A clear difference in the rate of conversion was also seen between consumers who received communication about the tool (5.5%) and those who did not (3.6%). The better we can communicate with the public about drug pricing and raise awareness of their options as consumers – and the tools available to explore those options – the greater the ultimate cost savings will be.
[SOURCE: Forrester, May 1, 2008]
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