How Data Analysis Provides Transparency to Prescription Drug Prices
It’s a reality that both the healthcare industry and patients are negatively affected by perpetually increasing prescription drug prices. And though big pharma is working to do right, they aren’t always painted in a positive light.
Fortunately, the use of data analysis bridges the gap of trust by creating transparency. Essentially, real-time analytics can put everyone (PBMs, TPAs, employers, patients, benefits managers) on the same page to work off the same set of observations. Here, we take an in-depth look at how that happens.
Data Analysis Provides Real-Time Updates on the Market
Medication pricing is erratic and often changes at lightning speed. In the past, technology was not advanced enough to give real-time updates leaving benefits managers and PBMs to make decisions based on a quarterly or even a yearly basis.
This slow reactionary period often results in seeing crucial pricing details reduced down to simple percentages which can cause misconceptions of how pricing actually affects plans. For example; a typical quarterly report often shows medications achieving a small 4% inflation but using advanced analytics we discover that employers are missing out on a myriad of cost-saving options resulting in millions of dollars in missed opportunities.
These micro-changes in pricing can obliterate the cost performance of a plan which is why taking advantage of modern AI to see daily/weekly changes is crucial for cost savings.
Data Analysis Enables Drug Price Forecasting
Data analysis is often used to gain useful information and draw conclusions, but it can also be utilized to foreshadow future costs.
According to a recent article published on Global Pricing Innovations, “While retrospective methods provide a look at what has already happened in the market, helping to understand why those events happened, past events can formulate forward-thinking model structures to predict future scenarios.”
For example; it’s not uncommon for prescription drug utilization to be impacted by geographic locations, despite it being the same set of drugs being used elsewhere. The data surrounding this information can provide transparency to providers who will then be able to make changes in an effort to elicit a better outcome.
Simply put, by utilizing hard data, providers can employ proactive decision making with more accurate predictions of future costs. This not only helps to bring overall costs to the healthcare industry down but also improves patient outcomes.
Diminishes the Complexity of Drug Pricing
Pricing in the pharmaceutical world is incredibly complex and expecting a repeatable process to be in place is not realistic. However, data analysis can give an overview of the market as a whole and an in-depth look into many specific areas.
For example; companies, like Xevant, eliminate the need to analyze hundreds of reports. Instead, they automatically analyze data trends and alert users of immediate savings opportunities that can be communicated to clients.
This real-time insight into the market helps providers make better, quicker decisions and enables them to pivot plans when needed.
In-Depth Data in Real-Time
Prescription drug pricing has a huge impact on the healthcare industry. With hundreds of billions of dollars spent each year, PBMs, TPAs, and benefits managers are often held responsible for higher costs which is why full transparency is so important.
Shedding light on the intricacies of prescription drug costs is the first step to bridging the gap of trust. That’s where Xevant comes in.
Xevant automates daily claim information and insights in real-time, as well as, pinpoints areas of improvement so users can communicate opportunities for savings the moment they are available. Xevant’s platform also allows you to set custom KPIs to meet specific needs of clients. With Xevant you can reduce costs, save time, and build trust.