Cost of drugs in TRICARE program to drop by 25 percent

NEW YORK The government will pay less for branded drugs through the TRICARE program under the defense authorization act for fiscal year 2008 that will require drug makers to charge less for drugs.

The costs of drugs will decrease by 25 percent, saving the Department of Defense more than $700 million next year, though military family members’ and retirees’ co-payments will remain the same.

Drug companies that refuse to comply will have their drugs removed from the DoD’s uniform formulary, which means they can’t be dispensed unless authorized as medically necessary.