Cost Containment Strategies in Managed Care Pharmacy Programs

Abstract

Over the past several years prescription drug costs have been escalating at a rate higher than any other single medical expense. For this reason, managed care entities have been focusing much more attention on their prescription drug programs and searching for the magical answer of how to reduce or at least control the spiraling costs. The following article illustrates one author's views and experiences in the management of prescription drug programs. Although the topics discussed in this article are not meant to be all inclusive, several major cost containment strategies, including benefit design, pharmacy network, reimbursement levels, member copayments, formulary systems, physician incentives and others, are highlighted.