Drug Topics - January 7, 2008 - (Page 4)

4 DRUG TOPICS JANUARY 7, 2008 www.drugtopics.com Of Interest to Pharmacists Survey finds employers give high marks to PBMs Sandra Levy ost companies have a positive image of pharmacy benefit management firms, according to the results of the 2007Arxcel Prescription Benefit Research Survey. Arxcel, a PBM consultant in Williamsville, N.Y., found that 50% of all respondents had a positive opinion of the PBM industry. One-third said they were neutral toward the industry. Only 13.9% of respondents said they had a negative or very negative opinion. The survey, conducted in May, used telephone interviews with corporate executives from companies with 1,000 or more employees nationwide, with 101 interviews completed. When asked to rank four functions typically provided by a PBM for its clients, 47% saw negotiating discounts on prescription drugs as the most important function of a PBM; controlling costs through clinical programs, and paying claims, billing, and customer service were seen as equally important at 21% and 22%, respectively. Only 11% chose providing data as the most important function. The survey also asked respondents to rank these four functions from 1 to 4, with 1 representing the most important function, and 4 being the least important. Taking the percentages of respondents who ranked a particular function a 1 or a 2 overall, the respondents ranked the following functions in importance: •Negotiating discounts: This funcWhich factors are most responsible tion was rated 1 or for escalating drug costs? 2 by 73% of respondents. 17% •Controlling costs: 25% Aging 52% of responpopulation New drug dents rated this development expense function a 1 or 2. •Paying claims: Inflation of 7% This function was 45% drug pricing rated 1 or 2 by DTC Advertising 6% Changes in 45% of responpharmaceutical dents product use •Providing data: This function was rated 1 or 2 by 30% of respondents. Respondents were asked to rate the PBM industry’s performance on a scale from 1 to 10, with 1 being poor and 10 being excellent. Some 41% rated the industry on M the positive end (7 or above) on the scale from 1 to 10. When asked to rate their own PBM on the same scale, 63% rated their own company’s PBM a 7 or above. Regarding the escalation of prescription drug costs, companies placed blame on direct-to-consumer advertising. Forty-five percent of respondents chose DTC advertising as the one thing that has played the largest role in escalating drug costs; 25% of respondents mentioned the cost of developing new drugs; 17% pointed a finger at the aging population; only 7% chose inflation, down from 14% in 2006 and 20% in 2005. In this year’s survey, 6% put the blame for higher drug costs on changes in the use of pharmaceutical products. Respondents were also asked to rate each of a list of potential solutions, on a scale of 1 to 4, as to their individual viability as a way to slow the rate of price increases. A rating of 1 means the solution would have high potential to make an impact, while a rating of 4 means the solution would have little or no impact. Here are some solutions offered and how respondents rated them: •Patient education about cost-effective use of medicines: Seventy-five percent of the respondents gave this solution a rating of 1 or 2. •Providing incentives to use mail-order service: This solution was rated 1 or 2 by 69% of the respondents. •Increasing clinical oversight: Sixty-six percent gave this solution a rating of 1 or 2. •Educating doctors on the cost of pharmaceuticals and their proper use. This was rated a 1 or 2 by 65% of the respondents. •Increasing the member’s cost share through tiered copayments or overall higher co-pays: Sixty percent of respondents gave this solution a favorable rating of 1 or 2. •Limiting coverage for high-cost medications: Half of respondents gave this solution a favorable rating of 1 or 2. Respondents were asked what overall percentage increase they expected in their prescription benefit cost for 2007. Again, as in past years, six in 10 respondents expect an increase of up to 15%. Finally, when asked how much of this cost increase would be passed on to the employee as a premium increase (if there was an increase in cost), a little less than half of the companies said they plan to pass on no more than 50% of their premium increase to the employee. DT http://www.drugtopics.com

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Drug Topics - January 7, 2008

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