In today’s complex healthcare environment, we continue to see a dynamic shift in managing complex chronic conditions with life-saving drugs. This introduces additional challenges for employers and their employees, especially in terms of access and affordability.

With the evolution of prescription benefit management, it’s a critical best practice for employers to plan today for tomorrow’s challenges. This will help identify opportunities and strategies to ensure the best clinical and economic outcomes for their company and their employees while delivering high-value, cost-effective prescription benefits.

Now is the time when most employers are planning for 2019 budgets. Understanding what will drive costs creates the opportunity for strategies to ensure the right drug is used for the right patient at the right time.

We are noticing three key themes related to 2019 expected pharmacy costs:

1. Overall drug costs will continue to grow by single digits primarily through generic competition and slower growth of specialty drugs. Specialty drugs will continue to drive the overall drug trend, continuing to increase by double digits (around 11%).
2. Two conditions: Autoimmune (anti-inflammatory) and Diabetes – account for 30-35% of all pharmacy costs. Drugs used to treat complex chronic conditions such as rheumatoid arthritis, psoriasis, Crohn’s disease, and other autoimmune diseases, along with cancer and HIV/AIDS drugs, will account for about 60% of all specialty drug costs.
3. Specialty costs on the medical benefit are the most significant cost drivers today with little management. Injectable and infused drugs administered by providers to address conditions such as cancer and autoimmune disorders present unique challenges, with cancer and cancer-associated supportive drugs having a trend up to 25%; however, with less than 60% of employers having care management and prior-authorization programs for these top conditions.

Magellan Rx Management will soon be hosting the 14^th Annual Specialty Summit.  We had the opportunity to sit down with Phillip Vecchiolli, senior vice president and general manager of our specialty division at Magellan Rx Management to share his thoughts on this exciting event.

Magellan Health Insights: What can attendees expect at this year’s Specialty Summit?

Phillip Vecchiolli: The Magellan Rx Management Specialty Summit has become the source for staying ahead in today’s specialty drug management industry.  We host nationally recognized payers, physicians and industry insiders for a program packed with timely insights, thoughtful debate, and actionable dialogue on emerging trends in the evolving specialty market and effective solutions for managing specialty drug trend.

MHI: When and where is it going to be held this year?

PV: We are excited to be back in the heart of New York City. The event takes place on August 28-30, 2017 at the Sheraton New York Times Square Hotel.  And when attendees aren’t engaging in Summit activities, we encourage them to take in the sights, as we’ll be within walking distance of a number of famous attractions including Central Park, The Plaza Hotel, Radio City Music Hall, MOMA and more.

MHI: Why do you think this event is especially important?

PV: This is an exciting and disruptive time in specialty pharmacy. Specialty drug costs are skyrocketing and without an understanding of the unique dynamics around specialty drug management, payers run the risk of overlooking or misunderstanding this critical area of pharmacy spend.

At Magellan Rx Management, we specialize in connecting people with the tools, and information they need to make the best decisions for the populations they serve.  This event serves as a forum for nationally recognized payers, oncologists, and industry thought leaders to explore and discuss the key issues and challenges we face in an evolving specialty market.  Along with general topic presentations we also have a few interviews and panels for even more information-sharing discussions designed to provide an environment of teamwork and strategic information sharing.

MHI: Who typically attends the specialty summit?

PV: The Specialty Summit is designed especially for health plans, employer groups, states, third-party administrators, oncologists, practice managers, brokers, consultants and pharmaceutical manufacturers.

MHI: What are you most excited about this year?

PV: This year’s program is packed with timely insights from thought leaders across the specialty landscape and is designed to shine a light on the emerging trends and effective solutions in this evolving specialty market.

From its beginnings 14 years ago, this conference has exploded in terms of attendance and the caliber of our programming. This year, we’re expecting over 600 attendees, with numerous opportunities to network and meet with our peers, as well as compelling programming and dialogue around the most pressing topics in our industry. I’m particularly looking forward to the presentations and discussions about the oncology landscape, the Affordable Care Act, biosimilars, and medical pharmacy.  Our keynote Dr. Matt Iseman is going to be pretty spectacular too!

MHI: Any closing words?

PV: We are thrilled to again be hosting the 14^th Annual Specialty Summit.  At Magellan Rx, we are proud to be pioneers in specialty pharmacy management. By leveraging our industry-leading expertise and value-driven solutions, we help our clients solve their specialty pharmacy challenges. Our passion is to help people live more vibrant lives and to motivate them to take better control of their health.

Learn more about the Specialty Summit