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Study Commissioned by CVS Caremark Highlights Opportunities to Significantly Reduce Spending on Costly Specialty Medications
Wednesday, April 9, 2014
WOONSOCKET, R.I., April 9, 2014 /PRNewswire/ --Specialty medications present a challenge for payers as costs for these expensive drugs consume an increasing portion of overall health care spending. In fact, specialty pharmacy spend is expected to rise from $92 billion in 2012 to $235 billion by 2018. According to a new Milliman report commissioned by CVS Caremark, implementing an effective "channel transition" approach the process of moving prescriptions from the medical benefit to the pharmacy benefit can produce significant savings for health care payers by improving management of these complex and costly drugs.
The report finds the transition from the medical to the pharmacy benefit can save payers an average of 19 percent across 14 classes of self- or provider-administered injectable specialty drugs for the treatment of conditions such as multiple sclerosis and autoimmune disorders. By moving coverage to the pharmacy benefit, payers are able to implement more effective management tools such as formulary design, utilization management, and preferred or exclusive networks. According to the report, more than half (53 percent) of specialty medication spending currently occurs under the medical benefit.
"With the continued rise in utilization and spend related to specialty medications, health care payers have a tremendous opportunity to reduce costs and improve care through a variety of approaches," said Alan Lotvin, M.D., executive vice president of Specialty Pharmacy for CVS Caremark. "Transitioning specialty medications from the medical benefit to the pharmacy benefit, as well as offering patients more convenient options by addressing where infusion care is administered, can produce significant savings. We are focused on finding ways to better manage the rising costs related to these complex and expensive drugs, while ensuring patients continue to receive high-quality care."
Compared to the average patient, specialty patients are more likely to have multiple diagnoses, see more specialists, fill more prescriptions and have more lab tests, ER visits and hospitalizations, resulting in overall health care costs as much as 8.5 times higher than non-specialty patients1.
"CVS Caremark provides an end-to-end pharmacy management and delivery solution for specialty pharmacy patients that helps them better manage their medications and their disease throughout their journey," said Jon Roberts, president, CVS Caremark pharmacy benefit management business. "Our suite of programs focuses on managing cost, quality and access for specialty conditions through a range of unique specialty pharmacy services."
The CVS Caremark suite of specialty pharmacy services includes:
- Industry-leading experience and proven outcomes related to managing across the medical and pharmacy benefit.
- Team of specialized pharmacists, nurses and dieticians who manage the whole patient and support them throughout the progression of their disease to help control overall health care costs.
- Unmatched, convenient access to specialty drugs, patient counseling and the appropriate site of care, combined with consistent clinical quality, improves the patient experience and adherence to their plan of care.
Access the full Milliman report.
The study was based on 2012 claims data for a commercially insured population as reported in Milliman's Consolidated Health Cost Guidelines (HCG) database. The study included plans with a variety of commercial plan designs (e.g., PPO, HMO and POS).
Milliman is among the world's largest providers of actuarial and related products and services. The firm has consulting practices in healthcare, property & casualty insurance, life insurance and financial services, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. For further information, visit www.milliman.com.
About CVS Caremark
CVS Caremark is dedicated to helping people on their path to better health as the largest integrated pharmacy company in the United States. Through the company's more than 7,600 CVS/pharmacy stores; its leading pharmacy benefit manager serving more than 60 million plan members; and its retail health clinic system, the largest in the nation with more than 800 MinuteClinic locations, it is a market leader in mail order, retail and specialty pharmacy, retail clinics, and Medicare Part D Prescription Drug Plans. As a pharmacy innovation company with an unmatched breadth of capabilities, CVS Caremark continually strives to improve health and lower costs by developing new approaches such as its unique Pharmacy Advisor program that helps people with chronic diseases such as diabetes obtain and stay on their medications. Find more information about how CVS Caremark is reinventing pharmacy for better health at info.cvscaremark.com.
1 Vora J, Gomberg J. Milliman Specialty Medical Drug 2010 Commercial Benchmark Study. Milliman Inc. November 2012. Accessed at: http://us.milliman.com/uploadedFiles/insight/Research/health-rr/pdfs/specialty-medical-drug-benchmark-study.pdf.
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SOURCE CVS Caremark