Drug utilization management costs $93B per year, study finds

Drug utilization management costs payers, drugmakers, physicians and patients in the U.S. an estimated $93.3 billion per year, according to a study published Aug. 1 in Health Affairs.

As the list prices for drugs in the U.S. continue to soar, payers have scaled up their efforts to manage use and spending by requiring stricter prior authorizations, restricting drug formularies, and increasing patient cost-sharing requirements. 

Payers spend about $6 billion annually administering drug utilization management, and drugmakers spend about $24.8 billion annually supporting patient access in response, according to the study.

The study also found that physicians devote about $26.7 billion annually in time spent navigating utilization management, and patients spend about $35.8 billion annually in drug cost sharing.

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