Navitus' 2022 Annual Drug Trend Report Demonstrates Effectiveness of Model to Control Pharmacy Costs
- Jun 21, 2023
- Press Releases
MADISON, WISCONSIN – June 21, 2023 – Navitus Health Solutions released its 2022 Drug Trend Report summarizing excellence in managing pharmacy benefit costs for plan sponsors and health plans serving commercial markets. The Report highlights a year-over-year trend of 2.6%, considering both specialty and non-specialty products with half of Navitus’ commercial clients experiences a drug spend decrease compared to 2021.
“Navitus was founded in 2003 and brought to market as an alternate PBM model. This broke the traditional mold and did not lean on the same misaligned incentives and opacity widely seen in the industry. Twenty years later, I am extremely proud of this organization and the results driven in the best interest of our clients and members,“ said Brent Eberle, RPh, MBA, Senior Vice President and Chief Pharmacy Officer. “Perhaps more than ever, our mission-driven work to make medications more affordable is critically important as brand name prescription costs rise and healthcare costs pressure the system.”
Nearly 1 in 4 Americans taking prescription drugs say it’s difficult to afford their medicines. Prescription prices continue to rise, and new and novel therapies present both significant advancement in treatment and cost management implications. Commercial payors, challenged to balance affordability with an attractive benefit offering, are demanding full transparency to understand their true costs, to set goals, and to align expectations with their partners.
Navitus’ 100% transparent and pass-through model bolsters its lowest-net-cost philosophy. By favoring clinically-appropriate, lowest cost medications to rebate maximization, clients and members realized significant upfront savings.
Additional key findings from the report reveal:
New Clients Saved in Year 1: In 2022, new Navitus commercial clients realized average reduction in total drug cost of 12% compared to the previous year with another PBM.
Unit Cost Decrease on Specialty Drugs: While utilization fueled an increase in overall specialty drug spend Navitus clients saw a decrease in specialty unit cost by implementing formulary management strategies that preferred lower-net-cost alternatives like new-to-market generics and biosimilars.
Negative Cost Trend for Diabetes Drugs: Despite market momentum and expanded use of Glucagon-Like Peptide-1 Receptor Agonists (GLP-1s), an overall negative cost trend was achieved for the diabetes category due in part to increased competition within the insulin space and Navitus’ management of appropriate prescribing.
Navitus Health Solutions, owned by SSM Health and Costco Wholesale Corporation, was founded in 2003 as an alternative to traditional pharmacy benefit management (PBM) models. Navitus approaches pharmacy services differently. We are purpose-driven to help humans by removing cost from the drug supply chain to make medications more affordable for the people who need them. We proudly serve 9 million people through more than 1,000 plan sponsor and health plan client relationships. Our transparent, fully pass-through model enables our clients to achieve their goals and drive desired health and financial outcomes. To learn more about Navitus, visit www.navitus.com.
For media inquiries, contact Navitus@AllisonPR.com.