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Effects of Vertical Integration on Medicare Part D

Announced on  | Last Modified on  | Project Number: OEI-BL-24-00240

OBJECTIVE

Approximately three-quarters of Medicare Part D enrollees receive their prescription drug benefits through plans offered by five large companies. These large plan sponsors are vertically integrated operations affiliated with their own pharmacy benefit managers and, in many cases, their own mail-order and specialty pharmacies. Congress, the Medicare Payment Advisory Commission, and the media have raised concerns that vertical integration leads to higher prescription drug costs. This study will use existing pricing, payment, and rebate data to provide broader insight into the effect of vertical integration on Part D costs for both the Medicare program and its enrollees.

TIMELINE

  • March 15, 2024
    Announced
  • Today
    Office of Evaluation and Inspections In-Progress
  • Est FY2026
    Estimated Fiscal Year for Project Completion