News

Study commissioned by CVS Caremark examines reducing specialty drug spend

BY Antoinette Alexander

WOONSOCKET, R.I. — As the cost for specialty medications continues to rise, implementing an effective "channel transition" approach — the process of moving prescriptions from the medical benefit to the pharmacy benefit — can produce significant savings for healthcare payers by improving management of these complex and costly drugs, according to a new report commissioned by CVS Caremark.

"With the continued rise in utilization and spend related to specialty medications, health care payers have a tremendous opportunity to reduce costs and improve care through a variety of approaches," stated Alan Lotvin, EVP specialty pharmacy for CVS Caremark. "Transitioning specialty medications from the medical benefit to the pharmacy benefit, as well as offering patients more convenient options by addressing where infusion care is administered, can produce significant savings. We are focused on finding ways to better manage the rising costs related to these complex and expensive drugs, while ensuring patients continue to receive high-quality care."

The new Milliman report finds the transition from the medical to the pharmacy benefit can save payers an average of 19% across 14 classes of self- or provider-administered injectable specialty drugs for the treatment of conditions such as multiple sclerosis and autoimmune disorders. By moving coverage to the pharmacy benefit, payers are able to implement more effective management tools such as formulary design, utilization management, and preferred or exclusive networks. According to the report, more than half (53%) of specialty medication spending currently occurs under the medical benefit.

Compared with the average patient, specialty patients are more likely to have multiple diagnoses, see more specialists, fill more prescriptions and have more lab tests, ER visits and hospitalizations, resulting in overall health care costs as much as 8.5 times higher than non-specialty patients.

It is estimated that specialty pharmacy spend is expected to rise from $92 billion in 2012 to $235 billion by 2018.

"CVS Caremark provides an end-to-end pharmacy management and delivery solution for specialty pharmacy patients that helps them better manage their medications and their disease throughout their journey," stated Jon Roberts, president, CVS Caremark PBM business. "Our suite of programs focuses on managing cost, quality and access for specialty conditions through a range of unique specialty pharmacy services."

According to CVS Caremark, its suite of specialty pharmacy services includes:

  • Industry-leading experience and proven outcomes related to managing across the medical and pharmacy benefit;
  • Team of specialized pharmacists, nurses and dieticians who manage the whole patient and support them throughout the progression of their disease to help control overall health care costs; and
  • Unmatched, convenient access to specialty drugs, patient counseling and the appropriate site of care, combined with consistent clinical quality, improves the patient experience and adherence to their plan of care.

The study was based on 2012 claims data for a commercially insured population as reported in Milliman’s Consolidated Health Cost Guidelines database. The study included plans with a variety of commercial plan designs (e.g., PPO, HMO and POS).

Click here to access the full Milliman report.

 

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon's entry would shake up the most?
News

Nuzee releases new coffee pods

BY Ryan Chavis

SAN DIEGO — Nuzee, a consumers products company, announced the introduction of Coffee Blenders, a line of K-Cup compatible coffees. The product is available in three varieties: Lean, Focus and Escape.

Lean includes 400 mg of Svetol, a green coffee bean extract that can help with weight loss, the company said. Focus helps to boost cognitive function with the addition of 200 mg of Cereboost, a derivative from American Ginseng. Escape contains L-Tea Active, an amino acid found in green tea leaves that is clinically proven to reduce minor or occasional stress, minus the drowsiness.

"The Coffee Blenders line of coffee pods is expected to change the way people drink coffee," said Craig Hagopian, president and CEO of Nuzee. "By incorporating high-quality, clinically proven nutraceutical ingredients, consumers do not have to spend extra money on supplements or worry about forgetting to take them. With full servings of functional ingredients in every K-Cup, Coffee Blenders offers a convenient, cost-effective way to improve your health, all within your daily coffee routine, without sacrificing a great coffee taste."

All three varieties in the Coffee Blenders line are now available on CoffeeBlenders.com and Amazon. The product also will be available in select retailers later in the year. The company said it plans to introduce more varieties to the Coffee Blenders line in the second half of the year.

 

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon's entry would shake up the most?
News

Tennessee bill that would block PSE sales to drug offenders goes to governor’s desk

BY Michael Johnsen

WASHINGTON — The Consumer Healthcare Products Association on Tuesday applauded Tennessee state Rep. Tony Shipley, R-Kingsport, after his legislation — H.B. 1257 — passed out of the Tennessee House of Representatives. The bill, which passed the Senate last week, would implement a real-time, drug offender block list in Tennessee. 

The measure now heads to Tennessee Gov. Bill Haslam for his signature.

Representative Shipley’s real-time, drug-offender block list would work in tandem with the state’s pseudoephedrine electronic tracking system to bar all drug felons from purchasing pseudoephedrine-based medicines without a doctor’s prescription for 10 years. While Tennessee already uses a similar meth offender registry, Shipley’s legislation would implement enhancements to the system to ensure that more criminals are blocked.

"Representative Shipley’s bill would immediately provide Tennessee law enforcement officials and retailers with a tool that is proven to stop meth crime before it happens," stated Carlos Gutierrez, senior director and head of state government affairs for CHPA. "Oklahoma and Alabama recently adopted similar legislation and both states have seen significant progress against meth lab incidents. In Oklahoma, they’ve experienced a decline of more than 50%, and it is our hope that Tennessee will soon experience similar declines," he said. "CHPA continues to believe that Tennessee can make significant progress in the war against meth by passing solutions that target criminals, not law-abiding citizens. Representative Shipley’s legislation is an important example of that standard."

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon's entry would shake up the most?