Before the COVID-19 pandemic hit, pharmacy spend was expected to hit $560 billion in 2020 — a 66% increase since 2015 — and continue to grow at least 6.1% year-over-year for the next seven years. That figure will likely increase with uncertainties surrounding long-term care for recovered coronavirus patients and rising costs of specialty drugs.
Many employers worry about how medication costs will impact their healthcare spend and benefits budgets, which are already strapped. The reality is, however, that pharmacy benefits spending has changed dramatically in the last 10 years — with high-cost specialty drugs now accounting for 40-50% of overall prescription drug spend. Often just one utilizing member can cause a drastic shift in a company’s spend.
