Link Between Medicare Drug Coverage and MS Relapse Rates Identified

Sat 2nd Aug, 2025

Research Highlights Impact of Coverage Restrictions on Health Outcomes

Recent findings from the USC Schaeffer Center indicate a correlation between limited Medicare drug coverage and increased relapse rates in patients with multiple sclerosis (MS). The study, published in JAMA Network Open, underscores the potential health risks associated with narrower coverage options for specialty medications used to manage complex medical conditions.

As Medicare plans increasingly exclude certain specialty drugs, patients face significant challenges in accessing effective treatments for conditions such as MS, which affects the central nervous system. The research analyzed data from over 85,000 Medicare beneficiaries diagnosed with relapse-remitting MS, the most prevalent form of the disease characterized by episodes of neurological symptoms.

Findings reveal that beneficiaries enrolled in plans that offered broader coverage of MS therapies experienced notably lower rates of new or worsening symptoms. Specifically, patients with access to a wider array of treatment options had an 8-12% reduced likelihood of experiencing relapses compared to those with restricted formularies.

The study highlights the crucial role of pharmacy benefit managers, who negotiate drug coverage on behalf of Medicare plans. These managers often use formulary exclusions as a strategy to obtain deeper rebates from pharmaceutical manufacturers. While this approach may help contain costs when generic alternatives are available, it can adversely affect patients with complex conditions like MS, where treatment efficacy can vary significantly from person to person.

According to the research, many recent medications approved for MS management are not classified under Medicare's protected classes, which allows private insurers more flexibility to impose restrictions. The analysis showed that standalone Medicare Part D plans typically included only four out of the available 15 treatments, while Medicare Advantage plans offered broader access, covering eight drugs across five treatment categories.

The implications of these findings are critical, especially considering the ongoing trend toward increased formulary exclusions. The researchers caution that this pattern could worsen under the new $2,000 out-of-pocket cap established for Part D plans, which may incentivize insurers to exclude high-cost specialty drugs to manage their financial liabilities.

To address these challenges, researchers suggest innovative financing models that could expand access to necessary medications. Potential solutions include payment arrangements that tie costs to health outcomes or subscription-based models, where insurers pay a flat rate for unlimited access to specific drugs.

These strategies aim to strike a balance between managing healthcare costs and ensuring that patients with complex diseases have access to the treatments they require to improve their quality of life. As the landscape of drug coverage continues to evolve, ongoing research and policy discussions will be essential in shaping a healthcare system that meets the needs of all patients.


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