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Investor Presentaiton

Overall, our analysis shows pharmacy reimbursements vary significantly between drugs, pharmacy type, and PBM, as shown in Figures 14, 15, and 16. Pharmacies often lose money when filling certain prescriptions and pharmacists have reported patients are sometimes turned away if a prescription will cost the pharmacy too much money. In 2021, pharmacies dispensed over 12,000 acetaminophen (Tylenol) prescriptions and, on average, made only $0.35 on each prescription. Pharmacies also dispensed almost 71,000 albuterol sulfate prescriptions with a total estimated loss of over $1.3 million or about $19 lost per prescription filled. Albuterol sulfate is an important lifesaving drug used to treat breathing conditions due to asthma and allergies and is one of the most commonly dispensed medications in Medicaid. The Asthma and Allergy Foundation of America encourages states to adopt policies that promote access to life saving medicine such as albuterol sulfate. Drug Estimated total Figure 14: Pharmacy reimbursements vary widely between selected prescription drugs in 2021 Dollar amount Estimated average pharmacy tested profit/loss per claim Number of claims tested pharmacy profit/loss Acetaminophen 12,178 $28,349 $4,269 $0.35 (Tylenol) Albuterol Sulfate 70,955 $2,766,642 -$1,315,643 -$18.54 Amoxicillin 13,608 $51,462 $35,067 $2.58 Basaglar 45,767 $16,790,230 $219,619 $4.80 Biktarvy 6,195 $20,369,308 $192,792 $31.12 Budesonide and 14,924 $4,079,910 $865,952 $58.02 Formoterol Fumarate Dihydrate Buprenorphine and 26,101 $3,766,875 $1,238,829 $47.46 Naloxone Eliquis Flovent Humira Metformin Omeprazole Trulicity Total 17,743 $8,457,352 $48,779 $2.75 12,868 $3,357,669 $56,127 $4.36 3,947 $26,178,519 $25,836 $6.55 26,184 $124,781 $62,680 $2.39 47,812 $176,185 $117,167 $2.45 18,473 $15,267,881 $716,139 $38.77 316,755 $101,415,163 $2,267,613 Source: Auditor analysis of OHA and PBM 2021 claims data and Oregon average acquisition cost data Potential monopoly power may be putting patients and independent pharmacies at risk Pharmacies made profits on certain drugs, but those amounts vary widely and likely do not cover the operating and overhead expenses incurred by the pharmacy. We found local, independent pharmacies are more likely to be reimbursed less for prescriptions than national chain pharmacies. Figure 16 highlights the reimbursement disparity between pharmacy type and some name brand drugs per prescription, like Humira and Biktarvy. For both drugs, the estimated profits for national chain pharmacies are more than three times the amount that independent pharmacies made. Oregon Secretary of State Report 2023-25 | August 2023 | page 21
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