1 / 16

BD Training

Biologics & Specialty Drugs The Road to Sustainability Mark Rolnick Director, Pharmaceutical Benefits. BD Training. Private Drug Plan Cost Drivers. Demographics Mark-Ups and Fees Coupon Cards Lack of consumerism Open formularies Biologics & Specialty. $. $.

hea
Download Presentation

BD Training

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Biologics & Specialty Drugs The Road to Sustainability Mark Rolnick Director, Pharmaceutical Benefits BD Training

  2. Private Drug PlanCost Drivers • Demographics • Mark-Ups and Fees • Coupon Cards • Lack of consumerism • Open formularies • Biologics & Specialty $ $ Source: Canadian Institute for Health Information, Drug Expenditures in Canada, 1985-2009 2

  3. 3

  4. Background Stats • Specialty Drugs make up 14 of our top 50 DINs • 42 drugs on the Prior Auth DIN List & others in top 50 = $203.5 Million in 2011 up from 170 million in 2010 (+20.4%) • 15.2% of PDD spend in 2011 vs. 13.2% in 2010 • Treating just ~1% of plan members (Source: 2011/2010 SLF Book of Business for All claims)

  5. Claimants over $25,000 in Spend Unprecedented Growth Average Specialty Claim for drugs on the SLF Prior Auth List = $2,340.80 Source: Telus 2011 SLF All Claims Data report Telus PA DIN List (includes oral Cancer DINs) Source: Telus Health Solutions Data, March 2012

  6. Sun Life’s Biologic Response Modifier Experience • Top 3 biologics • Distribution for utilization spans across age groups • Reflective of multiple indications for these products • Most common uses arthritis, gastrointestinal, psoriasis (Source: 2011/2010 SLF Book of Business for All claims)

  7. Sun Life’s OncologyExperience Important Drugs Not a huge cost burden yet Growing incredibly quickly

  8. Biologics Percentage of Global Therapeutic Pipeline Source: Trusheim et al.: Do Biologics Differ from Small Molecules? Forum for Health Economics & Policy, Vol. 13 [2010], Iss. 1, Art. 4

  9. Awareness of Cost Pressures • 8 in 10 agree • “that rising costs will make it difficult to maintain Canada’s healthcare system” and that “Canadian healthcare faces a funding crisis” • 7 in 10 agree • “that rising costs and growing use of prescription drugs will make it difficult for employers to maintain their current drug coverage”

  10. What’s Your Drug Plan Philosophy? Is the Drug Plan a cost or an investment? Is it a benefit to employees? Or is it Health Insurance? Can Wellness & Drug programs work together to limit disability claims?

  11. Where does the Employers Responsibility begin and end? Antibiotic for Acute chest infection? Cholesterol / Blood Pressure drugs prevent heart attack in 15 years? Cancer drug that extends life by 3 mos? Biologic for Crohn’s, MS, Arthritis, that helps keep members at work? Genetic testing shows, 25% chance at getting cancer in the next 10 years? Vaccine that costs $25,000 but prevents Alzheimer’s disease 30 years from now?

  12. What is the Employee’s role? How can they help keep Costs down? Do they even know that its an issue? How can we engage them more? What education can we provide them?

  13. What does the future hold in terms of specialty management? • Negotiated reimbursement for high cost drugs where alternatives exist • Risk Sharing arrangements for expensive therapies • Maximums to avoid concerns of dose escalation • Relying more on pharma company financial assistance

  14. What does the future hold in terms of specialty management? • Prior Authorization with Re-authorization criteria to ensure member is getting best outcomes and is an appropriate candidate in the first place • Preferred distribution network to gain efficiencies

  15. Creating Balance…. Maximize plan sponsor satisfaction through plan design Maximize plan member satisfaction Minimize plan sponsor costs 16

More Related