WOONSOCKET, R.I. — Drug prices continue to rise each year. Whether it’s treatments that have doubled in price due to inflation or new, life-saving therapies that come to market at astronomical prices, costs have gotten out of hand and much of the burden is falling on payers and their members.
In 2017, CVS Health established a hyperinflation drug removals program to help rein in skyrocketing pharmaceutical costs for its clients. This program reviews drug price inflation on a quarterly basis, and removes drugs with especially big price tags with lower-priced, clinically equivalent alternatives. CVS Health issued on Wednesday a new report that highlights cost savings realized through the company’s hyperinflation drug removals program.
As part of its hyperinflation strategy, CVS removed five drugs from their template formularies in April. Utilization of the removed drugs dropped by 99% in the months following the move. These removals are projected to save clients $0.38 per member per month or $4.60 per member per year.
“CVS Caremark puts strategies like hyperinflation drug removal in place to help our clients and members manage drug price inflation throughout the year. Our ongoing review ensures that drugs priced significantly higher than other clinically equivalent alternatives are removed from formularies so that our clients and members can achieve better health at a lower cost,” said Tracey Noe, senior director of communications at CVS Health.
To view the report click here.