Expensive specialty drugs

California Healthline reported that specialty drugs have been posing a challenge to CalPERS, a pension system for retired California public employees. While accounting for only 1% of prescriptions, specialty drugs accounted for roughly 30% of the pension system's total pharmaceutical spending.

Apparently, CalPERS has fairly successfully encouraged the use of generics, which now account for roughly 85% of their prescriptions. Last year saw headlines of how some specialty drugs (which generally do not have generic alternatives) cost more than $100,000 for a regimen.

These findings are likely representative of what many health insurance plans are experiencing. Left unchecked, increased reliance on specialty drugs will result in higher premiums. Perhaps a continuing trend in this area will force a discussion of what benefits should be covered by basic health plans.