Formulating a formulary for drug plans

Conditional formulary results in cost savings without sacrificing patient care
By David Malian
|CHRR, Guide to Pensions & Benefits|Last Updated: 03/15/2001

Fewer, more expensive drugs entering the Canadian marketplace as treatments are now being developed for diseases that were once thought to be incurable. The rapid advancement of biopharmaceutical research, while a boon to the patient, has placed an enormous burden on employer drug plans and has forced many drug plan managers to develop more effective strategies for drug cost containment.

Along with this fast-paced technology, the advent of direct-to-consumer advertising in the United States has been significant.

Pharmaceutical manufacturers have recognized the value in advertising directly to the consumer. Patients can influence the prescribing habits of their physicians. Consequently, the patient who is knowledgeable will demand the newest and, in many cases, the most expensive products available.