Differences in Drug Prices by Formulation

Publication

For medications available in multiple formulations, are there significant price differences between formulations, and what are the opportunity for savings if prescribers ordering the more expensive formulation switched to the less expensive formulation?

FINDINGS

Price differences across formulations exceeded 4,000% for certain medications. Prescribing of lower cost formulations could result in a 24% reduction in spending on medications available in multiple formulations.

MEANING

Solutions to encourage and facilitate prescribing of lower-cost formulations can offer a means to reduce drug spending with potentially minimal impacts on quality.