Tennessee Rx spend falls over 66%

20 April 2009

The southern US state of Tennessee's TennCare, which adopted Hillary Clinton's 1993 plan for universal health care before escalating costs  led to drastic cutbacks in recent years, has reported a more than  two-thirds drop in prescription drug spending from 2005 to 2008. In  2005, Governor Phil Bresenden (Democrat) introduced a cap on the number  of prescriptions a beneficiary could fill per month to five, of which  two could be branded products.

The Chattanooga Times Free Press reports that TennCare's Rx drug  spending fell from $2.44 billion to $706.0 million in the three-year  period, citing state officials who explained that much of the reduction  was attributable to Medicare reforms. However, like-for-like spending  still declined 40%, they claimed.

Reflecting the inflated TennCare program before Gov Bresenden was  elected on a pledge to control spending, the Novartis Pharmacy Benefit  Report found that, in 2008, Tennessee residents still used about 42%  more prescription drugs than the US average. The Chattanooga Times cited  TennCare's acting pharmacy director, Nicole Woods, who said: "I think we  have appropriate safeguards in place to help protect those who may have  a legitimate medical need."

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