A new report released this morning from pharmacy benefits manager (PBM) CVS Health highlighted how CVS implemented a number of techniques, like developing formularies based on clinical evidence and adjusting co-pays, which led to a five percent rise in 2015 compared to the 11.8 percent jump seen in 2014.
Troyen Brennan, CVS’s chief medical officer, told Forbes the PBM would have seen a 12.5 percent increase instead of five if it didn’t use rebates or management of utilization. Branded medications contributed to 7.6 percent of this growth whereas specialty drugs for cancers added only 2.8 percent.
Generics played a small role in this uptick accounting for just .7 percent.
Previously, researchers working for CVS would “analyze prescription spending data for trends annually,” according to the Associated Press. Their new process entails scouring the numbers every day to pinpoint changes in spending, and then offer coverage adjustments for certain cases in every quarter enabling a faster process for helping customers.
PBMs have attempted to strike deals with insurers and patients to provide better offers for these important drugs, while pharmaceutical firms claim the exorbitant prices they set for life-saving therapies are fair.
The success of CVS’s tactics could emphasize how flexibility and negotiations could quash the growing drug price debate.
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Filed Under: Drug Discovery
