Specialty Cost Management

Given the proliferation of specialty therapies, their high cost, and the complexity of such conditions, a singular focus on any one aspect of management will not deliver the best results. Given that a small portion – approximately 2 percent of plan members – drive over half of all specialty pharmacy spend,CVS Health Analytics, 2022. Data from Commercial Book of Business, 2022. All data sharing complies with applicable law, our information firewall and any applicable contractual limitations. Actual results may vary depending on benefit plan design, member demographics, programs implemented by the plan and other factors. and that waste can creep in both at the start of therapy and during treatment, it is vital to address cost and utilization for maximum impact.

By being connected in care, we can better engage your members and their providers to ensure the right medication is covered from the start, keep unit cost low, and eliminate waste through the duration of treatment. In addition, we intervene when needed to ensure that treatment is still working for members, and work with prescribers to change or discontinue it if not effective. Having the right interventions to detect and take action is critical to saving money.

Start therapy with certainty

Roughly 11% of pharmacy spend is generated when a member is first diagnosed and prescribed a specialty therapy.

To help ensure the right coverage from the start, our robust utilization management (UM) criteria are developed by pharmacists, reviewed by external physicians, and accredited by third-party organizations including URAC, an independent leader in promoting health care quality through accreditation, certification and measurement. This means any decisions about approval or denial of treatment are rooted in rigorous clinical standards. When a prescription prior authorization (PA) is first submitted for a specialty treatment most reviews are based on a simple attestation from the prescriber. Given our connectivity and interoperability, our specialty pharmacies use electronic health records (EHRs) to verify the diagnosis through actual patient records prior to approving the treatment. We can see the electronic health records for more than 80% of our specialty patients. Combined with our enhanced UM criteria, it makes it unlikely that a denial would be overturned on appeal, ensuring appropriate use, and saving payors money on high-cost therapies.

EHR connectivity supercharges your control over unnecessary utilization

See plan design information Formulary Member cost share Available lower-cost alternatives Access to accurate, relevant clinical information Initiate PA process in real time Minimized reliance on provider attestation*

CVS Caremark + CVS Specialty 4.1% higher final denials when PA requests are submitted using data from EHR and aligned to Specialty UM criteria**

*Some payors have specific utilization management requirements related to PA submissions (e.g., review, submission and/or physical signature by prescribers). Specialty Expedite is only used where permissible by payor requirements and applicable law. ** Compared with providers not enrolled.

We also employ our scale and expertise to deliver lowest unit cost at the therapeutic category level through strategies like formulary, generics first, and maximizing competition through biosimilars. By strategically balancing clinically rigorous UM and unit cost, we create the most value for our clients.

Eliminate waste throughout

The bulk of the cost occurs in the duration of a member’s therapy. By carefully monitoring every step of a member’s therapy to ensure they are on the right medication at the right dosage, that the treatment is working, and prevent unnecessary supply accumulation, we can eliminate waste and drive savings.

One way to do this is by optimizing supply management.A specialty pharmacy service performed by CVS Specialty pharmacy for members of select contracted PBM and CVS Specialty standalone payor clients who fill specialty prescriptions through CVS Specialty, and is included as a core service in the payor agreement. Given the high cost of specialty drugs, even a small amount of excess supply – medication that the patient doesn’t need to have on hand – can significantly add to payor cost.

Sometimes members accumulate extra medication over time, which can add to your costs. Member logs on to refill Rx Preferred fill date shown New date selected More appropriate drug therapy, reduced waste Automated monitoring triggers interventions, proposes tailored refill dates for each member

~$2,300 savings per targeted patientCVS Health Analytics, 2021. *Targeted patients make up <2% of all specialty patients​. CVS Health, 2022. Estimated savings based on CVS Specialty data 1/1/21 – 10/31/21 representing successful supply management optimization (SMO) interventions. SMO referenced savings are specific to the following top nine specialty therapies: Rheumatoid Arthritis, Psoriasis, Inflammatory Bowel Disease, Hepatitis C, Multiple Sclerosis, Growth Hormone, Oncology, Hereditary Angioedema and Osteoporosis. As of January 4, 2022, SMO is available across most specialty therapies. Actual results may vary depending on benefit plan design, member demographics, programs implemented by the plan and other factors.

Intervene when needed

Specialty conditions are complex, and therapies sometimes stop working for members. This may mean the members do not see an improvement in their conditions or their symptoms worsen. Side effects may negatively affect adherence. Continuing a member on such a therapy is wasted spend. Using our advanced data analytics and digital infrastructure, Intelligent Medication Monitoring (IMM)CVS Specialty patients only., can identify, and engage members who are no longer benefitting from their therapy. Through targeted interventions and proactive therapy management, we can identify gaps in care, help improve appropriate adherence, and reduce wasted spend to lower overall costs.

We also use the proactive and retrospective visibility to generate insights that enable us to innovate new solutions and programs to further reduce waste and lower costs.

Clearly see the benefit

Our comprehensive approach to specialty management targets every step of the process, and all the components work together to help deliver the most savings for payors. 

Illustrative reporting example.

Clear, transparent reporting enables clients to see exactly how these strategies work for your plan. We proactively monitor the pipeline of new drugs and utilization trends to provide consultative prospective reports to clients. And our retrospective data analysis help payors understand their plan spend in detail. Our goal is to deliver results and provide value, to our clients and their members, now and into the future.

Want to learn more about how our comprehensive, integrated approach to specialty management helps your plan save money? Ask Us