Think lowering your pharmacy benefit costs is impossible? Recent headlines and studies make savings seem allusive as costs continue to skyrocket.
- By 2023 drug spend is expected to increase to over $420 billion per year.1
- In the first half of 2019, the average price increase per drug was 10.5%, about five times the rate of inflation.2
- One in four people currently taking a medication find it difficult to afford their medicine.3
With statistics like these, plan sponsors are feeling the pressure to find a solution. The good news is that savings are possible. Find out how one plan saved millions on their pharmacy benefit spend by choosing a pass-through pharmacy benefit manager (PBM).
Identifying opportunities for savings
Concerned about growing prescription expenses, the State of Montana knew it was time for a change. With its traditional PBM, costs reached levels equating to almost 20% of its total plan spend.
This triggered its search for a fully-transparent PBM who could help manage its growing prescription costs.
developing a better pharmacy benefits plan
Through its partnership with Navitus, the State was able to improve performance and effectively reach its goals by implementing a few key solutions.Improving Formulary Management Performance: A new formulary provided access to high-quality, clinically-effective medications to improve member health and deliver the lowest net cost.
The implementation of these programs and other cost-reduction strategies resulted in a significant decrease in total net cost in the first year. With Navitus’ unique pass-through model, 100% of all discounts and rebates received were passed directly back to the State.
Want to see more results?
Download the full case study to find out how the State of Montana achieved a 28.8% decrease in total net cost in the first year!
- The Year Ahead: Pharmaceuticals & Healthcare In 2019. Fitch Solutions.
store.fitchsolutions.com/the-year-ahead-pharmaceuticals-healthcare-in-2019. Published November 2018.
- Mole B. 879% drug price hike is one of 3,400 in 2019 so far; rate of hikes increasing. ARS Technica. https://arstechnica.com/science/2019/07/big-pharma-raising-drug-prices-even-more-in-2019-3400-hikes-as-high-as-879/. Published July 2, 2019. Accessed September 24, 2019.
- Kamal R, Cox C, McDermott D. What are the recent and forecasted trends in prescription drug spending? Peterson-Kaiser Health System Tracker. https://www.healthsystemtracker.org/chart-collection/recent-forecasted-trends-prescription-drug-spending/. Published February 20, 2019. Accessed September 16, 2019.