Employers must take immediate steps to control the rising cost of specialty pharmacy as it outpaces the rest of prescription drug spending, according to a new report from Towers Perrin.

The 20th Annual Towers Watson/NBGH Best Practices in Health Care Employer Survey of 487 large U.S. employers, shows that specialty pharmacy drugs are significantly driving up prescription drug spending. In particular, while pharmacy currently represents about 20% of employer-sponsored medical benefits costs, it is increasing at a rate that accounts for roughly half of medical cost inflation.

Currently, 26% of employers’ medical plans address specialty drug cost and utilization and that number is expected to triple in three years. In addition to what they are already doing, 53% of employers are adding new coverage and utilization restrictions for specialty pharmacy and another 32% of employers plan to add them by 2018. Such restrictions include requiring prior authorization and limiting quantities prescribed based on clinical evidence.

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