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Managing Pharmacy Trend Rates.

Nathan Cassin, Lisa Zeitel, Hitesh Patel

Benefits Quarterly

|May 22, 2018

Summary

This summary is machine-generated.

Rising pharmaceutical costs are unsustainable for plan sponsors. This article explores strategies like best-in-class contracting and adapting to drug mix changes to mitigate these evolving prescription drug trends.

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Area of Science:

Health Economics
Pharmaceutical Policy

Background:

Double-digit price inflation in pharmaceutical costs presents a significant challenge.
Current drug trend rates are unsustainable for plan sponsors, posing future difficulties.

Purpose of the Study:

To discuss emerging strategies for managing prescription drug cost trends.
To explore methods for mitigating evolving pharmaceutical costs.

Main Methods:

Analysis of current pharmaceutical cost trends.
Review of best-in-class contracting strategies.
Examination of factors affecting drug mix and reimbursement models.

Main Results:

Prescription drug cost trends are difficult to pinpoint but are unsustainable.
Emerging strategies are crucial for managing future pharmaceutical expenditures.

Conclusions:

Plan sponsors face ongoing challenges with rising drug costs.
Proactive strategies in contracting, drug mix, and reimbursement are essential for mitigation.