Drugs continue to be a cost driver for benefits plans, so what should plan sponsors expect going forward? Speakers at TELUS Health’s annual drug conference identified three key trends.
1) The drug cost trend is going up – Although plan sponsors have enjoyed a relatively calm period, “we’re starting to see signs of a period of renewed drug cost growth,” said Vincent Ng, health business consulting senior manager with TELUS Health. He pointed to the large number of higher-cost specialty and biologic drugs coming to market as evidence—for example, there are more than 200 cancer and immune system drugs in the pipeline at the final stage of FDA approval.
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From 2013 to 2014, the number of claimants across Canada rose by 2.4% and claims went up by 2.9%, per TELUS Health’s book of business, explained John Anacleto, manager, business & analysis with TELUS Health Analytics. The greatest spend is among those ages 50 to 59. For this group, diabetes is the biggest cost driver, with a significant spend on insulin and diabetic devices, such as test strips. But can plan sponsors actually do anything about it?
“You can’t really change your plan design to curb costs for all drugs or devices, especially for diabetes or insulin,” said Anacleto. “But what you should do is look at what your plan is doing to discourage people from becoming [part of that group]…what can you do to help the patients at that point before they move on to the final stage of using insulin?”
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2) Mobile health is on the rise – “We’re seeing a very consumer-driven, technology-enabled medication management trend that’s emerging,” explained Ng. Mobile health apps, in particular, are becoming more prevalent, he said, noting more than 43,000 apps are categorized as “health and fitness” or “medical” in the Apple iTunes store.
Use of wearables is also growing, he said, as “consumers and plan members are increasingly willing—and demanding—to monitor their health status.” Not only does this provide another data source for benefits providers and plan sponsors, it may also lead to greater willingness among employees to participate in workplace wellness programs, he added.
Read: Are wearables the cure for rising health costs?
3) Pharmacies will take on a greater role in patient health – With the expansion of pharmacists’ scope of practice, there’s a greater opportunity to involve them in helping people manage chronic diseases. Ng foresees pharmacies becoming “health and wellness destinations,” with pharmacists serving as health coaches for plan members.
And technology plays a role here, too. The growth of “digital health” has the potential to expand pharmacy’s reach with existing customers in a cost-effective way, said Ng, noting Walgreens is leading the way in this area.