Two PBM reports show dramatic slowdown in US medicine spending growth

5 March 2018

Newly-released pharmacy benefit manager (PBM) data show medicine spending is growing at the slowest rate in years. After accounting for discounts and rebates negotiated with biopharmaceutical companies, PBMs report that medicine spending growth in 2017 was in the low single digits or slightly negative, writes Holly Campbell, a deputy vice president of public affairs at Pharmaceutical and Research Manufacturers of America, (PhRMA), on the trade groups website,

Express Scripts reported spending on medicines grew just 1.5 percent in 2017, which is the smallest increase since they started tracking spending data 25 years ago. Looking forward, Express Scripts projects a 1% to 3% annual increase in total medicine spending in the commercial market over each of the next three years (2018 to 2020).
Prime Therapeutics reported spending on medicines in the commercial market grew -0.2 percent in 2017. Spending on medicines in Medicare Part D and Medicaid was also negative, -0.8% and -5.4%, respectively.

So where do the discounts go?

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