CVS Caremark 2020 Drug Trend Report
Connectivity, effective management strategies delivered client cost savings
Our world experienced an extraordinary amount of change last year. Everything and everyone weathered headwinds like never before including the health care system. It pushed our society to see and solve problems more clearly.
We weren’t immune to that pressure. We adapted our business, while continuing to focus on our key goal, keeping drug spend in check — delivering an overall drug trend of just 2.9 percent as well as negative trend for 34 percent of commercial pharmacy benefit management (PBM) clients.
Helping clients manage their spend is why we exist, and we’ll always remain focused on doing that. But we can do more. At the crux of the two forces of change this past year — the pandemic and a reckoning with social injustice — is the need to create equitable access to high-quality services for every American. As providers of pharmacy services to one in three Americans, we see a clear opportunity to help our country make real progress toward that goal.
Using analytics to guide pandemic preparedness and support
Preventing disruption within the pharmacy supply chain was a responsibility that we took very seriously last year.
Tracking utilization during a period of foregone care
Routine and preventive care plummeted, making people less likely to start prescription drug therapy.
Addressing historic health inequities
2020 forced a long-overdue reckoning on the factors that have historically created inferior health outcomes in communities of color.
Keeping drug costs manageable
We maintained our focus on client costs by driving to lowest net cost and appropriate utilization, delivering results.
New drugs and new indications drive specialty
Specialty treatments, driven by utilization, are now the largest portion of pharmacy spend.
Connectivity as a lever to reduce waste, lower costs
Our investments in connectivity helped maintain member engagement, leading to cost savings for clients.
Reducing out-of-pocket costs, a typical barrier to adherence
We kept drugs affordable for members out of-pocket-costs declined for sixth straight year.
Staying ahead of the evolving pharmacy landscape
Marketplace trends will require a new — and focused — way of delivering service to our clients.
To read more about the pharmacy benefit and how to manage drug spend, visit CVS Health Payor Solutions.
This report provides an overview of performance for CVS Health commercial PBM clients — employers and health plans. Data was calculated on a cohort of nearly 1,100 clients, covering 23 million lives. The cohort is built only on clients under our management throughout all of 2019 and 2020, excluding commercial clients with eligibility shifts exceeding 20 percent as well as any clients contractually prohibited from inclusion. Prescription drug trend is the measure of growth in prescription spending per member per month. Unless otherwise noted, reported data is net of negotiated pricing, rebates, and manufacturer discounts.
The source for data in this document is CVS Health Enterprise Analytics, unless otherwise noted.
Adherence results may vary based upon a variety of factors such as plan design, demographics and programs adopted by the plan.
Client-specific modeling available upon request.
Savings will vary based upon a variety of factors including things such as plan design, demographics and programs implemented by the plan.
CVS Health uses and shares data as allowed by applicable law, and by our agreements and our information firewall.
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