Pharmacy Benefit Analytic Strategies

By leveraging Ingenix data, tools, and analytics, you can make informed pharmacy benefit decisions to decrease your drug trend for a potential savings of millions of dollars annually.

Realize significant savings by increasing…

• Generic utilization
• Formulary utilization
• Use of rebates

On average, a 2.5% pharmacy trend reduction equals savings of approximately $12 million for every 1 million covered lives.

When our clients talk to us about pharmacy benefits, a common theme usually emerges: “We have a well-planned pharmacy benefit program…our vendors are reputable and experienced…and our rates are the lowest in the marketplace. So why is my drug trend so high?” In recent years, drug costs have continued to outpace the cost of all other health care components by a significant margin, despite the efforts of pharmacy benefit managers (PBMs). Today, drug costs represent approximately 20% of total health care costs, and the drug trend continues to rise at 10–20% per year.

By leveraging Ingenix data, tools, and analytics, you can quantify your current position in order to chart a corrective course regarding:

• Pharmacy trend—your annual rate of pharma cost increase
• Optimal drug selection—the mix of preferred vs. non-preferred products that maintain or improve outcomes
• Cost per drug category—your gross cost prior to rebates, and your net cost following rebates
• Rebate dollars—cutting-edge market share analysis of preferred vs. non-preferred products

Armed with this intelligence, you can make informed pharmacy benefit decisions to decrease your drug trend for a potential savings of millions of dollars annually.

We encourage you or other decision makers within your pharmacy management group to contact us to discuss your specific needs and the broad range of capabilities we can bring to the task of reducing pharmacy trend, including:

• Deep Custom Analytics
• Application Development
• Pharmacy Benefit Auditing
• Physician Profiling, Outreach, and Benchmarking
• Benefit Design and Management Modeling
• Formulary Management and Decision Support
• Trend Management and Forecasting
• Pharmacy Benefit Benchmarks
• Data Warehousing