As evidenced by the graph, the inflationary pressures on the total program are tremendous. This is a significant change over the past decade, as prior to this time period, utilization accounted for almost 75% of the increase in program trend.

At the same time, it’s important to review all four of the distinct components comprising the cost per prescription:

• Inflation
• Units per prescription
• Brand/generic mix
• Therapeutic mix

Other factors contributing to overall cost trends include new drugs to market, expanded indications, physician prescribing patterns, patent expirations and generic or over-the-counter conversions.

Based on its knowledge of the industry, Arxcel expects to see drug trend in 2005 remain at approximately 15%. And while many of the factors influencing costs may seem to be out of the control of plan sponsors, it is possible for them to effectively control and limit cost increases to their pharmacy benefit programs. The means to achieving this goal is to develop and monitor a program that is committed to offering the most appropriate and efficacious drug therapy as cost effectively as possible.

At Arxcel, we work with our clients to develop and manage a pharmacy benefit program that is tailored to meet their needs. Once the program is designed, we provide ongoing analysis and support to ensure the program’s success. To learn more about how we can assist you in managing your pharmacy benefit program, call (716) 646-9292 or e-mail Paula Schembri at: paula@arxcel.com.

2005 Arxcel Prescription Benefit
Research Survey Underway

As part of its annual research series examining prescription benefit trends, Arxcel is currently working on the 2005 survey. In addition to gathering the perspectives of human resource and benefits management executives nationwide regarding prescription benefit costs and the impact of those costs on today's employers, this year's survey will also include questions about access to drugs from Canada.

Conducted by an independent professional research firm, the survey provides Arxcel with a greater understanding of the challenges the human resource industry faces in delivering quality benefit programs while managing costs. 

Because prescription drugs purchased from Canada are significantly cheaper, up to 80%, than those available in the United States, some employers are now wondering if access to drugs from Canada is a viable solution for managing costs. 

"As the debate surrounding the purchase of prescription drugs from Canada continues to intensify, it makes sense for this year's survey to focus attention on this controversial issue," notes CEO Chris Robbins.

Scheduled for release in spring 2005, the final survey results will be available on Arxcel's Web site in PDF format. Click here to register for e-mail notification when the survey is available online.