With annual cost increases of 12-14%, what can be done to reduce your prescription costs?

Make sure your PBM is giving you the best possible "deal", by looking at all components of cost, including discounts, rebates, and administrative and dispensing fees.

Have your Pharmacy Benefit Manager (PBM) analyze your utilization patterns to see what types of drugs are creating your increases. Ask your PBM whether your patterns of use are consistent with industry norms, and whether they have utilization management programs to address any issues.

If you haven't switched to a formulary plan, move cautiously. Look at your current utilization patterns, as you may be surprised that formulary drugs are more expensive per fill then those not in the formulary.

Monitor the co-pay differences between generic and brand name drugs, and keep them consistent with underlying costs. Generally, brand name drugs are four times more costly on a per fill basis.

Make sure your incentive to use mail order is not too generous. The co-pay for a three-month supply through the mail needs to be 1.5 to 2.0 times the retail co-pay.

Closely monitor your population's use of specialty drugs, which are drugs used to treat such chronic conditions as cancer, hemophilia, multiple sclerosis, etc. Cost trends for these drugs are around 20%, which is much higher than for most common drugs.

Bolton Partners can help you analyze this data and determine if you are getting the best pricing deal possible from your PBM. For information on how we can help you, email us at PBM@BoltonPartners.com