For every dollar spent on over-the-counter (OTC) medicines, the U.S. healthcare system saves six to seven dollars, providing $102 billion in value annually, says a new report from the Consumer Healthcare Products Association (CHPA).
In the report, “The Value of OTC Medicine to the United States,” the CHPA stated that an estimated 240 million people rely on OTC medicines for symptomatic relief annually. The study evaluated how consumers would treat these conditions if they did not have access to OTC medicines and determined the result would cost $77 billion in clinic visits and diagnostic testing and $25 billion in prescription medications.
Booz & Co. surveyed 3,200 consumers on behalf of CHPA for the study, which is the first to measure the aggregate cost savings of OTC medicines as used for the seven most common self-treatable conditions in the United States.
"This study is the first of its kind to assign a dollar value that captures how our entire healthcare system relies on OTC medicines for affordable healthcare," said Scott M. Melville, CHPA President and CEO, in a statement. "When you consider that every dollar spent on an OTC medicine saves our system six to seven dollars in avoided cost, it is paramount that our policymakers do all they can to encourage consumer access to OTC medicines for self-treatable conditions."
The study also found that by keeping the American workforce healthy and at work, OTC medicines offer $23 billion in potential additional productivity benefits.
Additional key findings from the study include:
- The total value of OTC medicines is captured throughout the entire U.S. healthcare system: $52.7 billion in value for employer sponsored health plans, $27.5 billion in value for government programs such as Medicare and Medicaid, and $21.7 billion in value for self-insured and uninsured populations.
- The availability of OTC medicines – off the shelf, without a prescription – provides symptomatic relief for an estimated 60 million people who would otherwise not seek treatment.
- Without affordable and accessible OTC medicines, underserved populations would depend more heavily on higher-cost medical care. One in 4 Medicaid patients and 1 in 10 uninsured individuals would seek treatment in an emergency department as their first recourse for treating a minor ailment.
The American Medical Association used the study results to support its efforts to make changes to the Affordable Care Act.
“This study underscores some of the reasons why the AMA believes it is important to eliminate the provision of the Affordable Care Act that requires millions of patients using flexible spending accounts, and other tax-preferred accounts, to obtain a prescription for over-the-counter (OTC) drugs to be eligible for reimbursement,” said Peter W. Carmel, MD, president of the American Medical Association, in a statement. “Ending this provision will reduce unnecessary office visits, which will save time and money for patients, physicians and the healthcare system.”
Follow HFN Editor Rene Letourneau on Twitter @ReneLetourneau.