SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Magellan Rx Management, the pharmacy benefits management division of Magellan Health, Inc. (NASDAQ: MGLN), today released its second annual Medicaid Trend Report. Developed through in-depth data analysis and supported by Magellan’s broad national experience managing the fee-for-service (FFS) Medicaid pharmacy programs the report provides detailed insights into the pharmacy economics that drive trend and the cost of care, uncovering real opportunities for states to get more engaged and innovative when it comes to pharmacy management, particularly in specialty.
“While traditional drug trend was flat over the two-year period, the Medicaid FFS space experienced double-digit growth in specialty, which is similar to what we’re seeing with commercial plans,” said Doug Brown, vice president of account management, pharmacy pricing and value-based solutions. “This indicates that states, like commercial plans, are not immune from the higher costs associated with specialty drugs and highlights a real opportunity for states to take a more innovative management approach. As thought leaders in specialty with a robust set of clinical and cost management tools, Magellan Rx Management is helping states to identify solutions to address these rising trends.”
Other findings in this year’s Medicaid Trend Report include:
- Even though utilization of specialty products remained constant, the percent of total net spend attributed to specialty drugs increased by almost 5 percent.
- For the second year in a row, states’ efforts to curb the prescription volume of short-acting narcotics and opioids resulted in a 10 percent decline in utilization.
- The top 5 drug classes, which contribute 40 percent of total net spend account for only 14 percent of total claims. Of those five classes, two were specialty classes; HIV/AIDS and Hemophilia.
- Six of the top 10 drugs by net spend were specialty drugs (Harvoni, Advate, Triumeq, Genvoya, Stribild, Orkambi)
Magellan Rx Management leaders will host a free webinar on September 27, 2017 at 2 p.m. Eastern to discuss current market trends and implications relating to the unique Medicaid fee-for-service population.
The Magellan Rx Management Medicaid Trend Report includes data derived from Magellan’s fee-for-service Medicaid pharmacy programs in 21 states and Washington, DC. Magellan Rx Management is a full-service PBM that expands beyond traditional core services to help its customers and members solve complex pharmacy challenges by connecting them to the people, technology and information they need to make smarter healthcare decisions. Magellan Rx Management is leading the next evolution of PBMs by using a value-driven approach that moves past the traditional volume-focused thinking to deliver true value-driven solutions, including targeted clinical programs, powerful member and provider engagement strategies, advanced analytics and expert specialty pharmacy management capabilities. As pioneers in managing specialty spend under both the pharmacy and medical benefit, Magellan Rx Management is effectively-positioned to continue delivering thought-leading solutions in this complex and rapidly growing area of healthcare to help people live healthier lives.
About Magellan Health: Magellan Health, Inc. is a leader in managing the fastest growing, most complex areas of health, including special populations, complete pharmacy benefits and other specialty areas of healthcare. Magellan supports innovative ways of accessing better health through technology, while remaining focused on the critical personal relationships that are necessary to achieve a healthy, vibrant life. Magellan's customers include health plans and other managed care organizations, employers, labor unions, various military and governmental agencies and third-party administrators. For more information, visit MagellanHealth.com.