(A007) Mark Cuban’s Cost Plus Drug Company and Potential Cost Savings for Otolaryngologic Care

Introduction: Direct-to-consumer pharmaceutical models such as the Mark Cuban Cost Plus Drug Company (MCCPDC) acquire prescription medications at a lower cost and to provide significant cost savings in comparison to other prescription resources. To date, no previous studies have compared differences in otolaryngologic prescription costs when purchasing through MCCPDC vs. Medicare Part D.

Methods: We queried 2021 data (Part D) from the Centers for Medicare & Medicaid Service and identified the top 25 otolaryngologic medications by claim volume. The medications were then cross-referenced for inclusion with the MCCPDC (https://costplusdrugs.com/) medication list. Total dosage units dispensed, total claims, total spending, and average weighted cost per dosage unit were extracted from Part D claims data. Savings with prescription purchasing through MCCPDC were estimated by substituting unit prices listed on Medicare claims with those offered by MCCPDC online pharmacy. Cost projection was performed and Medicare spending was adjusted based on the National Average Drug Acquisition Cost (NADAC) dataset, accounting for manufacturing and ingredient cost changes.

Results: The total Medicare spending across the 18 medications was $2.69 billion. In the long-term group, there were potential savings of $769 million (41%). The short term group showed potential savings of $87 million (22%) and the volume/mass-based group showed potential savings of $180 million (41%). Only four medications had disadvantaged price points. Total potential savings were $1.04 69 billion (39%) across 14 out of 18 medications (excluding medications with disadvantaged price points).

Conclusions: The MCCPDC may have potential to reduce spending on prescription drugs frequently prescribed within otolaryngology. Our findings provide optimism that growing negotiation powers for CMS and additional avenues for purchasing medication may assist in alleviating the burden of a growing national healthcare expenditure. Savings provided by MCCPDC may serve as an avenue for otolaryngologists to provide cost-effective, value-based care to their patients.