Drug Benefit Management

The drug expenditure remains the fastest growing segment of healthcare cost. With new drug developments and high-cost therapeutic breakthroughs emerging constantly, this trend will continue and may even escalate.

Simplistic, traditional approaches to drug benefit design and drug benefit management are generally low horizon, risky and expensive.

The average employee's drug benefit cost is approximately $1,000 per year. The average retiree drug benefit cost is over $1,500 per year. Drug expenditures are expected to grow at an annual rate of 10% to 14%, or more, for the foreseeable future.

The benefits consulting arm of Covington Healthcare Associates is highly experienced and well qualified to assist employers in the following critical domains:

  • Drug Benefit Design Changes
  • Drug Benefit Management Changes
  • Request-for-Proposal Development for Pharmacy Vendor Services
  • Evaluation of Bid Responses from Pharmacy Vendors
  • Pharmacy Vendor Selection
  • Pharmacy Vendor Contracting
  • Monitoring of Pharmacy Vendor Performance
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