A study released by the Consumer Healthcare Products Association (CHPA), found that for every dollar spent on over-the-counter (OTC) medicines, the U.S. healthcare system saves $6 to $7—providing $102 billion in value each year.

Booz & Co. surveyed 3,200 consumers for the study, which measured the aggregate cost savings of OTC medicines as used for the seven most common self-treatable conditions in the United States. An estimated 240 million people rely on OTC medicines for symptomatic relief; the study evaluated how consumers would treat the conditions if they did not have access to OTC medicines. The total value equates to the total direct savings from avoided clinical visits and diagnostic testing ($77 billion) and use of less costly OTC medicines, rather than more costly prescriptions ($25 billion).

Scott M. Melville, President and Chief Executive Officer of CHPAThe study also found that by keeping the American workforce healthy, OTC medicines offer $23 billion in potential additional productivity benefits from doctor's office visits avoided and time not having to be away from work for medical appointments. Americans would make an additional 450 million doctor visits annually, which equates to 56,000 medical practitioners working full-time, if they did not have access to OTC medicines and instead saw a physician to get a prescription.

The study findings underscore the importance of reversing a provision in the 2010 Affordable Care Act (ACA) that prohibits consumers from using their flexible spending arrangements (FSAs) to purchase OTC medicines without first getting a prescription, says Scott M. Melville, president and chief executive officer of CHPA. CHPA supports efforts in Congress to repeal the OTC prohibition, including the Restoring Access to Medication Act and the Patients' Freedom to Choose Act.

The study also found the total value of OTC medicines is captured throughout the 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. OTC medicinesprovide symptomatic relief for an estimated 60 million people who would otherwise not seek treatment.

Release Date: Jan. 31, 2012
Source: Consumer Healthcare Products Association