CVS Caremark helps commercial clients save money on pharmaceuticals
CVS Caremark's annual Insights report reviews annual trends in drugs and key issues in pharmacy care. The 2012 analysis found that an increase in generic distribution of medication to 77.4 percent helped commercial clients, such as health plans and employers, save on medical care.
CVS Caremark has an industry leading generic dispensing rate due to patent losses causing brands to lose market value in 2012 and a focus by the company on the use of generic drugs as cost-effective options. 70 percent of the company's sponsors use generic step therapy now, or have begun considering it for future implementation.
CVS Caremark projects that the next big wave will be in specialty medications, which treat complex diseases such as cancer. This past year the company saw an increase of three percentage points in this area, making roughly 20 percent of the total spent by clients specialty medications.
"As the generic wave begins to subside in the coming years, the impact of specialty pharmacy on client spend will only increase," said Jon Roberts, president of CVS Caremark's pharmacy benefit management business.
Using the company's proprietary Pharmacy Care Economic Model, it was able to calculate that generic drugs saved their clients over $643 million on their overall health care.