Employers continue to struggle with controlling rising health care costs and providing employees with affordable and quality care options. Of particular concern is the high costs associated with specialty drugs. The specialty drug industry has grown from a few available drugs in the 1990s to more than 300 specialty drugs today. For most employer-sponsored health plans, the cost of specialty drugs is their fastest-growing expense. As these treatments become more widely available, employers will likely be forced to address even higher specialty drug costs.
The recent rise of cell and gene therapy (CGT) may create even more concern for employers. These treatments typically range from $250,000 to $3.5 million per individual. While CGT is currently limited to a handful of orphan drugs and extremely rare conditions, this is expected to change in the next few years. Investment in regenerative medicine has grown 16% in 3 years, hitting a record high of $23.1 billion in 2021. As investment in this market continues to grow, the Business Research Company expects it to reach $34.31 billion in 2030. Therefore, without effective solutions in place, employers may be forced to contend with extreme and, in some cases, unsustainable medical costs.
Read the entire article at Apex Benefits, which explores strategies for managing the high costs associated with CGT.