Segal Group Projects Double-Digit Prescription Drug Benefit Cost Trends in 2017
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This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20161003006169/en/ (Graphic: Business Wire) 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. For
"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
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.
"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."
This is Segal's 20th annual survey of nearly 100 managed care organizations, health insurers, pharmacy benefit managers and third-party administrators.
Keywords for this news article include: Managed Care,
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