Annual drug costs increased $1.25 billion for members with more than $250,000 in annual drug spend - doubling in four years
EAGAN, Minn., Oct. 19, 2020 /PRNewswire/ -- Rare disease therapy. One-time gene therapies. High-priced cancer drugs. These are all reasons why a consumer may have drug costs of $250,000 or more annually. In Prime Therapeutics' (Prime) commercially-insured book of business, nearly 5,900 members passed that spending threshold in 2019, a 97% increase since 2016. And in 2019, those members accounted for $2.579 billion (9.7%) of all drug spend cumulatively through both the medical and pharmacy benefits.
Comparatively, Prime's 2019 study, with three years of data, showed approximately 5,000 members in the "drug super spender" category, having more than $250,000 in annual drug cost – a 60% increase over 2016. Prime's updated 2020 study shows the category of drug super spenders (high drug cost claimants) is a rapidly growing trend. If current trends continue, over the next five years Prime forecasts drug super spenders will account for more than 15% of all combined drug spend.
"This is an eye opener for our health plans," said Patrick Gleason, PharmD, assistant vice president of health outcomes at Prime. "As pharmaceutical companies bring innovation to the marketplace improving the lives of many Americans, the number of super spender members will also continue to grow."
Because there are only a few thousand super spenders, Prime is able to deep dive into members' integrated medical and pharmacy claims to understand what drives these costs. Prime's Specialty MonitorTM tool, launched in March 2019, helps health plans pinpoint costs and identify cost of care improvement opportunities for these members. Such improvements may include dispensing a drug from a more affordable setting (i.e., clinic vs. hospital) or working with the provider to optimize drug therapy (i.e., adjusting dosing to avoid waste).
"Health plans need to understand who in their member population are drug super spenders and who is predicted to become a super spender so together we can work with them to help find the most cost effective site of care and treatment regimen," added Gleason. "This is a win-win for both the patient and the health plan."
About Prime Therapeutics
Prime Therapeutics LLC (Prime) makes health care work better by helping people get the medicine they need to feel better and live well. Prime provides total drug management solutions for health plans, employers, and government programs including Medicare and Medicaid. The company processes claims and offers clinical services for people with complex medical conditions. Prime serves more than 30 million people. It is collectively owned by 18 Blue Cross and Blue Shield Plans, subsidiaries or affiliates of those plans. For more information visit www.primetherapeutics.com or follow @Prime_PBM on Twitter.
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SOURCE Prime Therapeutics LLC