January 20, 2016

Prescription Drug Prices Up in 2015

Cost Containment
, Network Solutions
, Pharmacy

The trend of increasing prescription costs continues as 2015 marks another double-digit percentage increase.

In 2015, prescription drug prices rose 10.4 percent largely because of increases in the cost of brand-name drugs, according to an analysis by Truveris Inc., a healthcare analytics company. This is a slight decrease from the 10.9 percent increase in 2014, but is the third consecutive year of over 10 percent growth.

Truveris also found that the price of branded drugs rose 14.8 percent and specialty drugs rose 9.2 percent in 2015.

Prescription drug prices are outpacing the U.S. inflation rate and in December, the federal government calculated that prescription drug spending hit nearly $300 billion in 2014 and the global pharmaceuticals market is expected to rise to $400 billion within three years, according to the World Health Organization. The significant increases have been impacting employers and has influenced them to integrated cost containment strategies as part of their workers’ compensation programs.

CorVel knows that when payors evaluate pharmacy spend, total exposure is the key to successful management. Their pharmacy solution and cost containment program manages clients’ total exposure and offers maximum network penetration, a first fill program, formulary management, brand to generic conversion, a mail order program and aggressive drug utilization management. Combining these services with access to a network of over 65,000 retail pharmacies nationwide and management of all bills with prescription medications, clients can experience significant reductions in their pharmacy exposures and spend.

Visit CorVel’s website to learn more about their pharmacy solutions.