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Prescription Drugs: Comparison of DOD and VA Direct Purchase Prices
John E. Dicken (au)
The Dept. of Defense (DOD) and Dept. of Veterans Affairs (VA) are major federal purchasers of prescription drugs. In FY 2012, these depts. spent a combined $11.8 billion to purchase drugs on behalf of approx. 18.5 million beneficiaries. In FY 2011, the depts.' expenditures -- totaling about $11.3 billion -- amounted to about 13% of all federal drug expenditures. DOD and VA face continued challenges in controlling drug costs and need to make drug savings a priority. Both agencies purchase drugs directly from manufacturers via prime vendors -- intermediaries that provide the drugs at a discount off the lowest price that would otherwise be available. The agencies dispense these drugs to beneficiaries through their medical facilities and pharmacies, including their mail order pharmacies. This report compares prices paid for prescription drugs across federal programs. It describes direct purchase prices paid by DOD and VA for a sample of prescription drugs. Table and figures. This is a print on demand report.
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