SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Magellan Rx Management, the pharmacy benefit management (PBM) division of Magellan Health, Inc. (NASDAQ:MGLN) today released its first Employer Market Insights Report, which highlights key areas of pharmacy trend and spend, and provides exclusive forecasting information to help employers better plan for the future.
The report highlights current and projected trend insights for both traditional and specialty drugs and explores the factors driving employer costs. Analysis of key therapeutic conditions provides an additional layer of forecasting, including a preview of the impact of new pipeline drugs.
“Today’s dynamic and complex healthcare environment has led to new developments in drug therapies that are both exciting and challenging. This is especially true for employers who are increasingly concerned about rising prescription costs,” said Mostafa Kamal, chief executive officer of Magellan Rx Management. “Our Employer Market Insights Report provides a unique perspective of pharmacy management allowing employers to better plan for the future.”
Key highlights from the Employer Market Insights Report:
- Specialty drug costs on the pharmacy benefit are projected to reach close to 50 percent of total drug cost by 2020.
- The overall growth of pharmacy benefit cost is expected to slow in 2019 and 2020
- By 2020, the specialty cost per claim will reach $6,300, almost four times the cost in 2008
- Autoimmune: anti-inflammatory and diabetes will drive overall drug costs, comprising between 30-35 percent of total pharmacy benefit cost.
- New specialty pipeline drugs will contribute 25 percent of forecasted overall pharmacy benefit growth by 2020.
Important insights for employers provided in the report, include: comprehensive forecasting for key areas of pharmacy trend and spend; effective cost management strategies to tackle these trends; and pilots and partnerships that demonstrate an innovative approach to pharmacy management.
In addition to cost trends, the report features a unique focus on specialty drugs, specifically the drug activity taking place on the medical benefit, one of the fastest and largest growing healthcare cost drivers. Medical pharmacy insights were collected through a primary survey with employer groups, showing current and future cost control management strategies for medical specialty drugs.
“By leveraging our advanced analytics framework, we uncover the hidden stories within the complex arena of prescription costs,” said Lori Bymark, senior vice president, advanced analytics, Magellan Rx Management. “These stories transform information into meaningful intelligence that empowers our customers to make better decisions, underscoring our commitment to provide value-driven solutions.”
Magellan Rx Management is a full-service, next generation, pharmacy benefit manager (PBM) with a value-driven approach that moves past the traditional volume-focused thinking to deliver meaningful solutions. Our services expand beyond traditional core services to help our customers and members solve complex pharmacy challenges by connecting them to the people, technology and information they need to make smarter healthcare decisions. As pioneers in managing specialty spend both on the prescription and medical benefit, we are effectively-positioned to continue delivering thought-leading solutions in this complex and rapidly growing area of healthcare to help people live healthier lives. Magellan Rx Management is a division of Magellan Health, Inc.
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.