Specialty drugs are used to treat patients with chronic conditions, rare diseases, and complex health issues. Typically, they have specific dosage, storage, handling, and administration guidelines, which in turn, requires high-touch monitoring and support.
Due to their growing need, specialty drugs are not only being introduced at an alarming rate, but also rising in cost. Experts place their growth at double digits, with specialty drugs soon encompassing nearly 50 percent of an employer’s total drug cost.
Alternative funding has evolved in recent years as a way to help employers manage specialty drug costs. Today, alternative funding goes beyond widely adopted coupons and variable rate co-pays. Alternative funding now encompasses the use of nonprofit and foundation dollars to fund high-cost specialty drugs as well as the sourcing of drugs internationally where drug costs are much lower than in the United States.
While effectively managing drug costs is imperative for employers and employees, and innovative opportunities do exist, there are risks associated with alternative funding. IPM can help employers and employees understand alternative funding and provide guidance around opportunities for their benefits programs.
Watch this video to learn more!