Benefits of E-Prescribing for Payers

A study funded by HHS' Agency for Healthcare Research and Quality found that e-prescribing systems with formulary decision support that allow prescribers to select lower cost or generic medications can save $845,000 per 100,000 patients and could reduce prescription drug spending by up to $3.9 million per 100,000 patients per year*.

PBMs are also very supportive of e-prescribing because it enables them to deliver formulary, benefits, pharmacy eligibility, and medication history information to prescribers at the time of prescribing. Having this information at the time of prescribing enables prescribers to make more informed decisions including prescribing on the patient's formulary, prescribing medications that are covered by the patient's medication benefits, and prescribing generic or other lower-cost medications. This ultimately enables prescription of a drug that is of lower cost and more likely to be picked up and taken by the patient. With the availability of medication history information, the prescriber also will be better informed about potential interactions. PBMs have made substantial investments to enable the delivery of this information to support safer, more cost-effective prescribing decisions.

* Effect of Electronic Prescribing With Formulary Decision Support on Medication Use and Cost, December 9, 2008. Michael A. Fischer, MD, MS; Christine Vogeli, PhD, Margaret Stedman, MPH; Timothy Ferris, MD, MPH; M. Alan Brrokhard, PhD; Joel S. Weissman, PhD.