US PBM clients had lowest prescription drug trend in five years

CVS Health (NYSE: CVS) has announced that, in 2017, the company kept drug price growth nearly flat for its pharmacy benefit management (PBM) clients in the USA, at a minimal 0.2%, despite manufacturer price inflation near 10%.

Overall, the combination of this nearly flat drug price growth, with low drug utilization growth of 1.7%, reduced drug trend for commercial clients to 1.9%, the lowest level in five years. Out-of-pocket costs for members also declined, with three out of four members spending less than $100 out-of-pocket for their prescription medications, and nearly 90% of members spending less than $300, even as adherence improved to its highest level in seven years. In addition, 42% of CVS Health commercial PBM clients spent less on their pharmacy benefit plan in 2017 than they had in 2016.

CVS Health, America’s biggest drugstore chain, is in the process of acquiring Aetna (NYSE: AET), one of the USA's leading diversified healthcare benefits companies, in a $69 billion deal.