Pharmacy Pricing in Today's Market: What You Need to Know
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Remember when generic drugs cost only $4 at your local pharmacy? Well, long gone are those days. In today’s pharmacy market, drug costs are soaring. Since Rx is the most visible and utilized employee benefit, what does the market look like now and where is it headed?
In recent years, the market saw a flat or very low single-digit increase. However, in 2015 pharmacy cost increases are projected to be 9.5%. What’s even more concerning: they’re expected to raise 10% in 2016 and another 10.5% in 2017. So why are costs increasing drastically? Here’s a few reasons:
- Drug and raw material shortages
- Generic market consolidation
- Regulatory issues
- Higher-priced new generics
- Shift from lower to higher cost generics
- Specialty drugs trending at 22%
Because of all of these factors, it’s imperative to have a key pharmacy benefit manager (PBM) that finds you affordable options. Generic increases, a costly specialty pipeline and PBM mergers are all current issues you need to be aware of. All of these things can end up costing you more than planned and negatively impacting your prescription drug benefit.
How can you get the most bang for your buck? Through contract negotiation, caving out the pharmacy benefits and pharmacy plan audits, you can spend wisely when it comes to prescription drugs. By keeping yourself informed on current trends, you can save more when it comes to your prescription drug costs. Know your options and start saving!
For more information about today’s pharmacy market and how to keep your costs down, check out the Pharmacy 101 Webinar recording!
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