Health care provider Kaiser Permanente said on Wednesday that it has commissioned Milliman, a global actuarial and professional services consulting firm, to conduct a study comparing Kaiser Permanente's 2023 prescription drug costs for mid-to-large commercial employer groups in Washington to a matched market benchmark.

According to Kaiser, the study revealed statistically significant prescription drug cost savings for commercial groups with 50 to 10,000 employees enrolled in Kaiser Permanente's HMO and preferred provider organisation products relative to market products in Washington.

The analysis excluded members with Medicare coverage, members residing outside Washington, jumbo accounts that have 10,000 or more members, and groups managed outside Washington.

Milliman's study showed that, after rebates, employers experienced 26% lower prescription drug costs with Kaiser Permanente HMO plans (USD21.52 savings per member per month compared to the market) and 15% lower prescription drug costs with Kaiser Permanente PPO plans (USD15.56 savings per member per month compared to the market).

Kaiser said that one key driver of savings was greater use of cost-effective generic and biosimilar medications. The study also showed key differences in how Kaiser Permanente delivers prescriptions compared to the market benchmark, including direct service to members through its retail, mail-order, and specialty pharmacies.

The study found that Kaiser Permanente's cost for generic drugs was lower than other pharmacies in the market, measured as a percentage of the national average drug acquisition cost, a federal benchmark that reflects the average price pharmacies pay for drugs. The greatest differences between Kaiser Permanente and the market benchmark were seen in mail-order and specialty drugs, where the study identified significant savings.