Pharmaceutical spend continues to be a main cost driver in the health care system, while additional governmental regulations challenge payers and providers. Despite factors in the marketplace that are out of our control, we are proud to have delivered a single-digit drug trend rate to our clients in 2015, based on total cost.
In 2015, Navitus’ commercial book of business experienced an increase in net total cost per member per month of 6.0%.
Since 2010, our book of business has experience phenomenal drug trend, consistently outperforming the major pharmacy benefit managers (PBMs). This pattern of marginal increase or negative trend was interrupted in 2014 due to various factors in the marketplace. Despite factors in the marketplace that are out of our control, we are proud to have delivered a single-digit drug trend rate to our clients in 2015, based on total cost.
The following chart depicts our 4-year cumulative trend compared to two other PBMs:
Trend Factors & Management
In the past year, Navitus’ drug trend was largely influenced by price inflation. Despite the increase in cost experienced in 2015, we successfully drove down trend through a multi-faceted drug trend management approach. Just a few of these efforts include:
- Aggressive rebate contracting and management. Navitus clients benefitted from rebates that were 49% higher in 2015 compared to 2014, reducing total drug trend by 3.9%.
- Rigorous formulary management. By maintaining a drug price monitoring program, we efficiently mitigate manufacturer price increases for clients, ensuring our lowest-net-cost formulary is always up to date.
- Innovative specialty pharmacy solutions. By bringing our wholly owned specialty pharmacy—Lumicera—into the mix, clients realized a decrease in acquisition costs by approximately 1-3%, further driving down trend.
- Implementing strategic custom networks. We supports clients in their pharmacy network strategies, creating custom network solutions to drive members to key pharmacies, improve discount rates and reduce dispensing fees based on individual client populations.
Contact us today to Share a Clear View on targeted cost-containment and quality-of-care strategies that empower members to lead healthier lives and result in improved health outcomes and lower costs.