Navitus releases annual Drug Trend Report

Navitus released its eighth annual 2023 Drug Trend Report, which shows a year-over-year trend of 6.8% within the commercial book of business. Twenty nine percent of Navitus commercial clients paid less for prescription drugs in 2023 than they did the previous year even with inflation and the growing use of expensive new medications like GLP-1 medications, the company said.

The Navitus Drug Trend Report shows that the organization’s ability to out-perform industry trends is the result of a strategic approach that focuses on delivering the lowest net cost to clients, 100% transparency on drug costs and a people-first mission, Navitus said. 

Across market segments, clients saw a negative trend within their first year with Navitus. In 2023, new clients realized an average 11% reduction in costs compared to the previous year with a different PBM. Cost trend is the calculated year-over-year change in costs driven by how many people are using a drug and the unit cost of a drug.

[Read more: GoodRx, Navitus Health Solutions launch Connect Program]

Several industry-wide trends impacted prescription drug spending, including rising drug costs and utilization in the non-specialty category, clinical advancements and the introduction of higher-cost specialty drugs and the availability of lower cost alternatives. By driving to the lowest drug acquisition price including rebates, Navitus customers realized savings from clinically appropriate, lower-cost options like generics or biosimilars when available.

“The rising drug costs and growing demand for GLP-1s were partially offset by lower-cost alternatives including specialty biosimilars and generics,” said Brent Eberle, chief pharmacy officer at Navitus. ”Plans are depending on Navitus to provide transparency to drug cost to help them make informed decisions and weed out needless expenses so they can pass along savings to their employees and members.” 

Significant trend drivers include:

• Growth of GLP-1s: (Glucagon-Like Peptide-1)—In 2023 several factors contributed to high trend within non-specialty. However, no singular factor had more impact on trend than GLP-1s did. While highly effective, GLP-1s including Ozempic (semaglutide) and Mounjaro (tirzepatide) are costly. Diabetic GLP-1 medications were the biggest contributor to trend growth in 2023. A Navitus diagnosis check program helped combat off-label use of GLP-1s, mitigating 30% of prescriptions being filled without an appropriate diagnosis. 
• Impact of Biosimilars: The launch of biosimilar products for Humira (adalimumab) reduced drug spend for clients with utilizing members. These injectable biologic drugs have proven very helpful for inflammatory diseases like arthritis or Crohn’s Disease, but biosimilars are just now reaching wide adoption. These are expected to significantly lower costs in 2024, as utilization shifts drive the industry towards more competitive pricing. 
• Attention-Deficit/Hyperactivity Disorder: While a generic version of Vyvanse (lisdexamfetamine) was released for the treatment of ADHD, drug shortages reduced competition and limited the opportunity for price reductions. 
• Opportunities with Generics and Specialty Medications: Generic launches for multiple sclerosis treatment and strong generic utilization rates across oncology contributed to savings in the specialty category. 

[Read more: Prioritizing Lower-Priced Biosimilar Medications]

“We continue to strengthen our transformative pass-through approach to provide our clients with a lowest-net-cost formulary and supportive clinical care model,” said Eberle. “With this system in place, our utilization, formulary and network management continue to perform at a higher level, resulting in improved health and even more savings.”

Access the full Navitus 2023 Drug Trend Report here.