Prescription drug spending makes up over 20 percent, or more than $100 billion, of what Blue Cross Blue Shield spends on its commercially insured members' healthcare, according to the health insurer.
In a review of branded patent-protected drugs and branded specialty drugs, the Blue Cross Blue Shield Association and Blue Health Intelligence analyzed how spending has increased for the two types of drugs during the past eight years.
The insurer found that while generic drugs comprised 83 percent of prescriptions in 2017, spending on those drugs only increased by 2 percent. In comparison, spending on branded patent-protected drugs and branded specialty drugs climbed quicker at 5 percent and 10 percent, respectively.
Annual price hikes for branded patent-protected prescriptions alone drive most of BCBS' spending on branded drugs. While branded patent-protected drugs comprise 52 percent of branded prescription drugs filled for BCBS members, they account for 66 percent of total brand drug spending.
"These trends highlight the underlying cost drivers in the prescription drug market and foreshadow potential surges in overall drug costs in the near future," according to BCBSA.
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