This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Third Annual Medical Pharmacy Trend Report Illuminates Hidden Healthcare Costs

Today, Magellan Pharmacy Solutions, a division of Magellan Health Services (NASDAQ: MGLN) released its third annual Medical Pharmacy Trend Report. The report is the only industry benchmark of its kind to analyze medical drug data, explaining the trends surrounding specialty medications such as those used to treat complex chronic conditions like cancer, rheumatoid arthritis and multiple sclerosis.

“No other source exists that directly measures the trends for injectables that are paid under a payor’s medical benefit, where top drugs, such as Neulasta, Remicade, Avastin, Rituxan, and Tysabri are almost entirely paid,” said Michael Waterbury, President of ICORE Healthcare (a subsidiary of Magellan Pharmacy Solutions).

As much as 50 percent of specialty pharmaceuticals are managed and paid for under the medical plan benefit today, a significant increase compared to previous years. This is driven by several factors, most notably the ability of manufacturers to maintain patent protection for the top 25 specialty drugs. Increases in price and utilization are also key drivers of increased trend. The year-over-year cost increase for specialty drugs was 16 percent for the top 25 therapies.

“Site of service continues to be a threat to cost containment with almost half of all specialty injectables spend being administered in hospitals where their costs can almost double,” said Waterbury. “The trend of larger health networks buying up smaller physician practices will compound this issue. Commercial plans spent more than $251 million in medical benefit injectable costs for every million lives covered across all sites of service in 2011, and there was a 22 percent cost increase from 2010 to 2011 for the top 25 therapies.”

Key findings of the trend report

This report demonstrates increased activity and awareness by payors across the country to manage medical pharmacy spend. Due to the complexity, the payors that were surveyed experienced continued challenges to ensure these programs improve quality and reduce costs.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs