Plan Sponsors Saving on Prescription Drugs Amidst Rising Costs and Inflation

July 22, 2024

Earlier this month, Navitus, a pharmacy benefits manager (PBM), released its eighth annual drug trend report that reveals how plan sponsors are saving on prescription drugs amidst rising costs and inflation. The report shows that 29% of Navitus customers paid less for prescription drugs in 2023 than they did the previous year, despite inflation and the rise of expensive GLP-1 medications

In the report, Navitus shares that their ability to out-perform industry trends in rising drug costs is the result of their, “strategic approach that focused on delivering the lowest net cost to clients, 100% transparency on drug costs and a people-first mission.” 

According to the report, new clients realized an average of 11% reduction in costs compared to the previous year, with a different PBM. 

Prescription drug spending was impacted by a number of industry-wide trends over the past year including rising drug costs and utilization in the non-specialty category, clinical advancements and the introduction of higher-cost specialty drugs and the availability of lower cost alternatives. 

The rise of costly GLP-1s, such as Ozempic and Mounjaro were the biggest contributors to trend growth in 2023. In order to combat these rising costs, Navitus took advantage of a diagnosis check program to help combat off-label use of GLP-1s, mitigating 30% of prescriptions being filled without an appropriate diagnosis. 

Additionally, the launch of biosimilar products for Humira reduced drug spend for clients with utilizing members. Navitus expects that the rising use of injectable biologic drugs will lower costs in 2024 as “utilization shifts drive the industry towards more competitive drug pricing.”

“The rising drug costs and growing demand for GLP-1s were partially offset by lower-cost alternatives including specialty biosimilars and generics,” said Brent Eberle, RPh, Chief Pharmacy Officer at Navitus. “Plans are depending on Navitus to provide transparency to drug cost to help them make informed decisions and weed out needless expenses so they can pass along savings to their employees and members.” 

Stay Informed and Connected

Receive expert insights, healthcare tips, and important updates on pharmacy benefits, drug recalls, and more—straight to your inbox.

Examining Trends that Drive Informed Decisions

Now Available: 8th Annual Drug Trend Report

See the latest results and access industry insights you need to navigate current trend drivers.

Related blogs

Navigating Healthcare and Improving Outcomes

Real-world Data Demonstrates Successful Transitions from Humira to Biosimilars

Real-world Data Demonstrates Successful Transitions from Humira to Biosimilars

Authors: Justin Arzt, PharmD; Agata Siwak, PharmD, MSBA; Marnie Wickizer, PharmD, AE-C, CDCES; Ryan Schmidt, PharmD; Robert Topp, RN, PhD; Matt Hustad, PharmD All authors are employees of Navitus Health Solutions. Abstract Adalimumab biosimilar adoption…

PBM 101: Why the Model Matters

PBM 101: Why the Model Matters

In the pharmaceutical and healthcare industry, pharmacy benefit managers (PBMs) are conduits of expertise, analytics and savings opportunities, poised to deliver exceptional health care while driving down costs. They coordinate between drug manufacturers,…

Associate Resource Group Spotlight: Green Team

Associate Resource Group Spotlight: Green Team

The Green Team believes that small changes lead to significant impact. Whether its reducing waste, conserving energy or implementing eco-friendly initiatives, they serve as an internal hub for expertise regarding environmental sustainability….

PBM 101: The Three PBM Business Models

PBM 101: The Three PBM Business Models

In the pharmaceutical and healthcare industry, pharmacy benefit managers (PBMs) are regarded by the media as intermediaries between drug manufacturers, pharmacies, health plans and plan sponsors. But they’re so much more than that. PBMs act as conduits…

An Automated Approach to Diagnosis Verification of GLP-1 RA for Type 2 Diabetes Mellitus (T2DM)

An Automated Approach to Diagnosis Verification of GLP-1 RA for Type 2 Diabetes Mellitus (T2DM)

This study examines the impact of implementing an automated point-of-sale diagnosis verification system for glucagon-like peptide-1 receptor agonists (GLP-1 RAs) compared to traditional utilization management approaches….

Navitus to Remove Stelara® from Formulary July 1, 2025, Adds Biosimilars to Drive $120 Million in Savings 

Navitus to Remove Stelara® from Formulary July 1, 2025, Adds Biosimilars to Drive $120 Million in Savings 

As the nation’s first 100% transparent, pass-through PBM, we continue to advance medication affordability by prioritizing upfront, real-time savings over rebated models….

Achieving Outstanding Results with Tailored Network Strategies

Achieving Outstanding Results with Tailored Network Strategies

A medium-sized city in Michigan with 1,350 members was seeking ways to lower its pharmacy benefit costs, which were growing under its existing traditional pharmacy benefit manager (PBM). With its member covered by a two-tier, open formulary including…

Breaking Through Barriers with Value-Based Plan Design

Breaking Through Barriers with Value-Based Plan Design

Facing increased pharmacy benefit expenses, Blain’s Farm and Fleet, a Midwestern employer group, desired to improve plan performance. Specifically it was interested in educating eligible members about the benefits available to them, promoting cost-effective…

Finding a Solution to Lower Prescription Drug Costs

Finding a Solution to Lower Prescription Drug Costs

The Rural Arizona Group Health Trust (RAGHT) wanted to gain better control of its escalating drug trend with its large, traditional pharmacy benefit manager (PBM). Having only worked with traditional PBMs in the past, RAGHT was interested in exploring…

previous arrow
next arrow