UnitedHealth, Humana mail-order pharmacies led in excessive Medicare refills: Report

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Mail-order pharmacies owned by UnitedHealth and Humana dispensed Medicare prescription refills earlier and more frequently than industry peers, according to an analysis of federal prescription data published Dec. 26 by The Wall Street Journal.

The analysis found mail-order pharmacies filled 9% of Medicare prescriptions between 2021 and 2023 but accounted for 37% of excess dispensing. Too-frequent refills across all pharmacies cost Medicare and patients $3 billion during that period, the Journal reported. Mail-order pharmacies, which often ship 90-day supplies automatically as patients near the end of prior prescriptions, process transactions when shipments go out rather than when customers pick up medications.

UnitedHealth’s Optum sent refills before the typical 68-day threshold 11% of the time, which was nearly nine times the rate of other Medicare pharmacies, according to the analysis. The company dispensed $142 worth of excess medications per Medicare beneficiary served during the three-year period, the highest among major pharmacy operators. Humana’s CenterWell ranked second at $90 per beneficiary.

UnitedHealth told the Journal its adherence efforts can result in occasional overages but said the alternative, such as patients becoming ill due to lack of medication, is more harmful and costly. A spokesperson told the outlet the company blocked up to five times as many early refills in 2024 compared to 2021-2022 and that the data doesn’t reflect current practices.

Humana told the Journal its protocols “strike the right balance” between timely fulfillment and medication adherence “without encouraging stockpiling.”

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