We are pleased to share our 2022 Drug Trend Report with you. This year's report highlights our success in managing pharmacy benefit costs for our clients.
Through our efforts, Navitus' commercial clients experienced an average net total per member per month (PMPM) cost of only $89.73, with a drug trend of only 2.6%. As a result, 49% of Navitus employer plan sponsors and commercial plans saw their net drug spending decrease compared to 2021. Navitus was able to control client costs thanks to:
- Improved pharmacy network rates combined with increased rebates and manufacturer fees. Amid the highly inflationary brand medication market, these contract enhancements resulted in significant savings that were immediately passed through to clients.
- Appropriate formulary and utilization management. Coverage recommendations to manage utilization growth of high-cost brand products helped minimize impact in some faster-growing drug categories such as migraine and diabetes.
The last year was undeniably exceptional in its complexities and challenges. 2022 saw notable increases in both drug list prices and utilization across a wide range of covered medications. Specialty medications accounted for over 50% of total spending for commercial plans, despite only representing about 1% of overall utilization.
As we chart a path forward, several future trends warrant particular attention:
The launch of biosimilar products for Humira® (adalimumab), the highest spend product on the market today, could significantly reduce drug spend for some clients. The first was released in February 2023 and several more will be released in July 2023.
- The availability of new generics for treating major depressive disorders and ADHD has the potential to lower costs in this category in late 2023 and 2024.
- New treatments for inflammatory skin conditions that previously lacked effective treatment could drive up the cost of dermatology medications.
- Therapeutic breakthroughs and growing clinical acceptance have increased the demand for chronic weight management treatments.
Explore the Navitus 2022 Drug Trend Report to discover more about what we have been able to achieve in partnership with our clients and in service to our members.
1. Net total cost paid by plans and membership minus manufacturer rebates.