Prime Therapeutics' 2013 overall net cost per Rx of $58.99 is industry-low for third consecutive year

In 2013, US Pharmacy Benefit Manager (PBM) Prime Therapeutic's average net ingredient cost per prescription was $58.99, according to its 2014 report on prescription drug costs. Prime's effective utilization management, benefit designs, high generic dispensing rates and negotiated discounts with pharmacies and manufacturers all contribute to keeping net ingredient costs low.

"Net ingredient cost is the truest measure of how successful pharmacy benefit managers are at managing drug costs," said Peter Wickersham, senior vice president of integrated care and specialty at Prime, adding: "Prime's industry-low net ingredient costs demonstrates how committed we are to keeping the cost of medicine more affordable for our members and clients."

Specialty medicines have a powerful effect on net ingredient cost and overall pharmacy spend increases. Inflation in drug prices is the main factor followed by increased use of more expensive specialty treatments. Traditional drug costs decreased overall as a result of the continued shift toward generics and other less expensive traditional drugs. Opportunities for generic savings are becoming fewer and less significant as expensive specialty drug use expands, pushing spend upward.