SlideShare a Scribd company logo
Lowest drug trend in 5 years
by leveraging lower-cost generics, strategic formulary management and
negotiated discounts and rebates for PBM members in 2017
Justsignupfor
ScriptSyncand
we’lldotherest.
Increasing medical costs impose a heavy
burden on patients and our health care system.
National health expenditures currently account
for 17.9% of our GDP and are expected to
increase to 19.9% by 20251
.
Tackling Rising
Drug Prices
Addressing Chronic
Disease Costs
Expanding Access
to Affordable Care
Improving Care
Coordination
Learn more at: cvshealth.com/thought-leadership/cost-of-care
1
Centers for Medicare and Medicaid Services data: https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/NationalHealthExpendData
/NationalHealthAccountsHistorical.html
2
IQVIA Institute: https://www.iqvia.com/institute/reports/medicine-use-and-spending-in-the-us-review-of-2017-outlook-to-2022
3
Partnership to Fight Chronic Disease Report: https://www.fightchronicdisease.org/latest-news/new-national-data-shows-projected-total-cost-chronic-disease-2016-2030-
america-42
4
Gallup Survey: http://news.gallup.com/poll/212780/cost-healthcare-americans-top-financial-tconcern.aspx
5
OECD Report: https://www.cnbc.com/2017/01/12/shocking-truth-20-of-health-care-expenditures-wasted-in-us-and-other-nations.html
Solutions to help make health care more
affordable for patients and taxpayers
Addressing Rising
Health Care Costs
1
2
3
4
CVS Health®
is
committed to lowering
health care costs
while delivering
high-quality care to
communities across
the country.
1. Rising Drug Prices
The average price of brand prescription drugs increased 58% from $231 to $364
over the past five years2
.
Savings passed directly to 10M members
negotiated rebates provided at point-of-sale to 10M PBM members
~90% spent < $300 OOP
nearly 90 percent of PBM members spent less than $300 out-of-pocket for
their prescription medicines in 2017
$420 average annual savings per patient
by identifying the lowest-cost medications through our Rx Savings Finder
We’re developing comprehensive programs to
lower drug costs for patients and payors:
2. Chronic Disease Costs
If rates of diseases such as obesity, diabetes and heart conditions continue to rise,
the cost to our health care system will reach $42 trillion between now and 20303
.
$0 copays
on medications for many chronic diseases through preventive
drug lists offered to payor clients
Increased adherence
as much as 1.8 percentage points in 2017 by designing plans
that connect chronic disease patients to lower-cost options
$3 saved for every $1 spent
on personalized interventions for patients through our
Pharmacy Advisor program
We’re implementing solutions to help manage costly
chronic diseases and improve outcomes for patients:
3. Access to Affordable Care
Americans rank the cost of health care as the most important financial problem
facing their family4
.
80% lower cost of care
through retail clinics (on average), compared to receiving
care through emergency rooms
Up to $3,000 savings
per at-home infusion treatment course through Coram,
compared to the same services provided in a health care facility
We’re expanding access to low-cost, high-quality
health care in communities and in the home:
4. Care Coordination
Waste and inefficiencies represent 20 cents of every dollar spent on health care5
.
50% fewer preventable readmissions
and an average of $1,300 savings per patient using pharmacist-led
medication reconciliation following a hospital stay
More than 70 collaborations
with major health systems to support joint clinical programs
and interoperable electronic health records
We’re providing savings by strengthening health
care integration and improving inefficiencies:

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Addressing Rising Health Care Costs | CVS Health

  • 1. Lowest drug trend in 5 years by leveraging lower-cost generics, strategic formulary management and negotiated discounts and rebates for PBM members in 2017 Justsignupfor ScriptSyncand we’lldotherest. Increasing medical costs impose a heavy burden on patients and our health care system. National health expenditures currently account for 17.9% of our GDP and are expected to increase to 19.9% by 20251 . Tackling Rising Drug Prices Addressing Chronic Disease Costs Expanding Access to Affordable Care Improving Care Coordination Learn more at: cvshealth.com/thought-leadership/cost-of-care 1 Centers for Medicare and Medicaid Services data: https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/NationalHealthExpendData /NationalHealthAccountsHistorical.html 2 IQVIA Institute: https://www.iqvia.com/institute/reports/medicine-use-and-spending-in-the-us-review-of-2017-outlook-to-2022 3 Partnership to Fight Chronic Disease Report: https://www.fightchronicdisease.org/latest-news/new-national-data-shows-projected-total-cost-chronic-disease-2016-2030- america-42 4 Gallup Survey: http://news.gallup.com/poll/212780/cost-healthcare-americans-top-financial-tconcern.aspx 5 OECD Report: https://www.cnbc.com/2017/01/12/shocking-truth-20-of-health-care-expenditures-wasted-in-us-and-other-nations.html Solutions to help make health care more affordable for patients and taxpayers Addressing Rising Health Care Costs 1 2 3 4 CVS Health® is committed to lowering health care costs while delivering high-quality care to communities across the country. 1. Rising Drug Prices The average price of brand prescription drugs increased 58% from $231 to $364 over the past five years2 . Savings passed directly to 10M members negotiated rebates provided at point-of-sale to 10M PBM members ~90% spent < $300 OOP nearly 90 percent of PBM members spent less than $300 out-of-pocket for their prescription medicines in 2017 $420 average annual savings per patient by identifying the lowest-cost medications through our Rx Savings Finder We’re developing comprehensive programs to lower drug costs for patients and payors: 2. Chronic Disease Costs If rates of diseases such as obesity, diabetes and heart conditions continue to rise, the cost to our health care system will reach $42 trillion between now and 20303 . $0 copays on medications for many chronic diseases through preventive drug lists offered to payor clients Increased adherence as much as 1.8 percentage points in 2017 by designing plans that connect chronic disease patients to lower-cost options $3 saved for every $1 spent on personalized interventions for patients through our Pharmacy Advisor program We’re implementing solutions to help manage costly chronic diseases and improve outcomes for patients: 3. Access to Affordable Care Americans rank the cost of health care as the most important financial problem facing their family4 . 80% lower cost of care through retail clinics (on average), compared to receiving care through emergency rooms Up to $3,000 savings per at-home infusion treatment course through Coram, compared to the same services provided in a health care facility We’re expanding access to low-cost, high-quality health care in communities and in the home: 4. Care Coordination Waste and inefficiencies represent 20 cents of every dollar spent on health care5 . 50% fewer preventable readmissions and an average of $1,300 savings per patient using pharmacist-led medication reconciliation following a hospital stay More than 70 collaborations with major health systems to support joint clinical programs and interoperable electronic health records We’re providing savings by strengthening health care integration and improving inefficiencies: