While growth in drug plan spending is forecast to remain in low single digits over the next few years, plan sponsors could do more to ensure value for the dollars they spend.
That was one of the key messages relayed at the Face-to-Face Drug Plan Management Forum held last week in Vancouver.
Although the current drug spending growth rate is considered benign after declines in recent years, Michael Brogan, president of IMS Brogan, noted that plan sponsors are concerned about the impact of high-priced biologics and an aging population.
But lower prices for generic drugs should continue to keep drug spending increases low. Based on a study commissioned by Rx&D, Brogan explained that the drug spending growth rate is forecast to range between 1.6% and 2.8% up to 2017.
Eric Lun, executive director, drug intelligence, at BC PharmaCare, pointed out that government policies are working to drive down drug prices while still allowing patients access to value-added medicines to support positive health outcomes.
“Public and private payers are part of the same healthcare system,” he said. “We share a common goal of ensuring sustainability, and we need to work together.”
The guiding principles of moving from an open to a managed drug plan formulary was presented by Renzo Del Negro, associate executive director of the BC Public Schools Employers’ Association, a multi-employer bargaining and HR agency.
“Educating plan members was an important part of changing the plan,” he said. “Members don’t understand drug pricing, dispensing fee caps or markups. We had to educate them so they would understand that the new plan is not an inferior plan and by lowering costs there is more money for other things.”