Through our annual employer data collection, we’ve caught onto many fascinating — and often alarming — trends. The most recent trend to astound us? Growth in rebate spend.
If you follow our content, you know we’ve been keeping a close watch on the increase in rebates over time. Even so, the magnitude of the situation is unsettling. As highlighted in our most recent employer survey, we saw per-employee rebate spend grow a whopping 24% from one year to the next. Good news for employers who retain rebates, right? Don’t be fooled — gross Rx spend (before netting out rebates) ballooned 30% annually for the group surveyed. And as you know, not all rebate dollars make it to the pockets of plan sponsors and members.
Rebate dollars per employee can range substantially based on a number of factors: drug mix, plan formulary, and your current PBM deal. High rebates could indicate excessive prescription drug spend or faulty incentives in your current PBM arrangement.
How does your plan compare? Let us know if you would like to gain more insight into this spend and ways to manage cost.