PBM: Specialty Medications Drive Increased US Prescription Drug Spending

The number of people who had annual prescription medication costs of $50,000 or more in 2016 was 35% higher than it was in 2014, according to pharmacy benefit manager Express Scripts.
Jackie Syrop
October 04, 2017
  • 8 of every 1000 Medicare beneficiaries, compared with 2 of every 1000 members in commercial, health exchange, and Medicaid plans, met this threshold
  • The percentage of total prescription drug costs paid by the health plan in this population increased in each of the last 3 years in all plan types
  • In 2016, the age- and gender-adjusted population for these patients averaged a high of 33 per 10,000 in the Northeast compared with a low of 24 per 10,000 in the West (Washington, DC, New Jersey, and Pennsylvania had the highest totals; Hawaii had the lowest)
  • Baby Boomers accounted for nearly half of all members who met this threshold in 2016
  • Health insurance plans covered nearly 98% of the costs of drugs for patients in this category in 2016, paying an average of $89,308 per person; nearly all (99.9%) costs were covered for those insured by Medicaid
  • In 2016, plan members in this group were responsible for 2.4% of their total 2016 pharmacy costs; annual OOP costs for this population averaged $2156
The report also examined trends among patients with annual drug costs that exceeded $50,000. For those with prescription drug costs from $50,000 to $99,999, the percentage of costs were for treatments for the following:
  • MS, 31.2%
  • Inflammatory conditions, 18.8%
  • Cancer, 14.9%
  • Hepatitis C, 11.3$
  • HIV, 2.5%
  • Diabetes, 1.9%
Similarly, for patients with drug costs from $100,000 to $199,999 conditions treated were the following:
  • Cancer, 52.7%
  • Hepatitis C, 11.5%
  • Pulmonary hypertension, 4.7%
Patients with drug costs from $200,000 to $499,999 were treated for severe conditions, including pulmonary hypertension, CF, hemophilia, and hereditary angioedema. Those whose costs ranged from $500,000 to $999,999 were treated for severe congenital conditions including hemophilia, hereditary angioedema (HAE), central nervous system/autonomic disorders, and enzyme deficiencies. The number of patients whose drug costs reached $1 million went from 1 member per million members in 2014 to 2 members per million members in 2016. Half are being treated for HAE; others are treated for enzyme deficiencies and hemophilia.

Glen Stettin, MD, senior vice president of clinical, research and new solutions at Express Scripts, noted that medicine is entering an era where customized gene therapies offer hope for a cure for serious cancers and other rare, fatal diseases, necessitating the development of innovations to allow plan sponsors to have resources available to pay for new medications. “There’s no limit on innovation in medicine, and that’s a good thing for patients, physicians, and payers,” said Stettin. “Yet, there is a limit on the financial resources available to pay for medicine.”

x-button

Health economics experts. Managed care professionals. Key clinical specialists. This is where the worlds of clinical, regulatory, and economical outcomes for specialized pharmaceutical biotechnology meet: The Center for Biosimilars is your online resource for emerging technologies, with a focus on improving critical thinking in the field to impact patient outcomes. We’ll discuss the current landscape for advanced health care management—reviewing emerging treatment paradigms, approaches, and considerations—all by authoritative industry voices.

Intellisphere, LLC
2 Clarke Drive
Suite 100
Cranbury, NJ 08512
P: 609-716-7777
F: 609-716-4747
Copyright © 2006-2019 Intellisphere, LLC. All Rights Reserved.