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Employer Group ABC

Incurred:

Apr 2014 thru Dec 2015

Paid:

Apr 2014 thru Mar 2016

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Page

3.2.1 Non-PBM Drug Spend

Non-PBM spend on pharmaceuticals is paid by Health Plan, not the PBM. It is therefore included in medical expenses

and usually includes the J-Codes. However, many non-PBM drugs are exceptionally expensive and deserve special

attention. Non-PBM drug spend is often best controlled through the use of contracting Specialty Pharmacy networks.

Figure 3.2.2 shows the total pharmacy spend as seen in chart 3.2.1, now with the non-PBM spend added in.

Figure 3.2.2 Distribution of Pharmacy Spend

(Refer to Figure 3.2.1)

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The top 10 drugs driving non-PBM spend are listed in table 3.2.1, with unit price and utilization values broken out.

Table 3.2.1 Top 10 drugs driving non-PBM spend

35,

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Drug

Current

PMPM

Change in

PMPM

Change in

# Scripts

Change in

Unit Pricing

Norm value

of PMPM

Percent

Rank (Norm

value =

50%)

PHARMACY (ALSO SEE

063X, AN EXTENSION

OF 025X) - GENERAL

CLASSIFICATION

$7.19

3.9%

-13.9%

25.0%

$7.97

-

Pharmacy - Extension

of 025X - Drugs

Requiring Detailed

Coding

$6.00

-13.5%

-8.5%

-2.0%

$1.77

-

Infliximab Injection

$1.82

-17.1%

-21.4%

9.3%

$1.34

-

Injection,

Pegfilgrastim, 6 Mg

$1.48

-13.1%

-27.5%

24.2%

$0.96

-

Rituximab Cancer

$1.40

72.9%

69.6%

5.7%

$0.65

-

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Source: Medical Intelligence : PBM Cost: Claims Module / Pharmacy

Non PBM Cost: Claims Module / Medical / drill by Plan Type / Zoom Forward / drill by Procedure Group / Non-PBM Drug

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Source: Medical Intelligence : Claims module / Medical / Plan Type / Zoom Forward / drill by Procedure Group / Non-PBM Drug / Source

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Norm or Verscend Norm in this report refers to the values from Verscend's Commercial Normative database.