Mail Order Pharmacies Tout Savings in Face of Rising Drug Costs

BY Courtney Huckabay

Segal Group projects double-​digit prescription drug benefit cost increases in 2017. Rates continue to outpace inflation and wage increases. The prescription drug cost trend for active employees and early retirees is projected to be 11.6 percent in 2017, up from 11.3 percent in 2016.

Prescription drug benefit cost trends for active populations continue to increase at double-​digit rates, according to forecasts in Segal’s 2017 Health Plan Cost Trend Survey. For Medicare-​eligible retirees, prescription drug trend is also projected to be high (9.9 percent), but lower than the 2016 projection (10.9 percent). However, the projected specialty drug/​biotech trend rate for 2017 is an exceptionally high 18.7 percent, and while typically less than 1 percent of all medications are specialty drugs, survey respondents indicated those drugs now account for 35 percent of total projected prescription drug cost trends for 2017.

Mail order pharmacies can get ahead of these increases by advertising and informing their customers. The latest AudienceSCAN study found 8.1% of Americans get most prescriptions (for themselves or family) filled by mail order.

Given the increasing number of pharmaceutical products now available for conditions that require the use of specialty medications, plan sponsors should consider implementing strategies that manage patients who use these drugs and target their costs,” commented Edward Kaplan, National Health Practice Leader. “This can include utilization-​management controls, formulary or preferred step-​therapy; tiered copayment structure and aggressive specialty drug contracting terms that maximize client and patient value.”

Plan sponsors can encourage Mail Order Pharmacy Users to save for increases with newspaper (print, online, mobile or tablet) advertising. AudienceSCAN reported 23.5% of Mail Order Pharmacy Users took action after reading newspaper ads in the past 30 days.

Segal also found that health plan cost trends have gone down compared to 2016, but continue to significantly outpace inflation and average wage increases more than threefold. While prescription drug cost trend is projected to rise 11.3 percent in 2017 and the popular open access PPO/​POS plan cost trend by 7.8 percent, wages are projected to increase by just 2.5 percent.

These trends are important to prescription drug takers. Inform them on television. According the latest AudienceSCAN data, 11.5% of Mail Order Pharmacy Users view TV as the best source for health/​medical information.

Plan sponsors will need to apply cost-​management strategies to bring trends down to more sustainable levels,” added Kaplan. “Each plan sponsor has a unique set of goals and cost drivers, so strategies will vary. The best strategies will directly address plan design, aggressive vendor contracting and measurable population health improvement.”

AudienceSCAN data is available as part of a subscription to AdMall for Agencies, or with the SalesFuel API. Media companies can access AudienceSCAN data through the AudienceSCAN Reports in AdMall.