--- title: Self-Insured Employers View Cost of Specialty Drugs as a Major Challenge description: The cost of specialty drugs presents a major challenge for employers. Find out how to address this challenge with pharmacy tools and strategies. image: https://blog.valenzhealth.com/hubfs/Blog/AdobeStock_192808129-3.jpeg --- [Skip to content](https://blog.valenzhealth.com/self-insured-employers-view-the-cost-of-specialty-drugs-as-a-major-challenge#page-content) [![Valenz Health](https://blog.valenzhealth.com/hubfs/web/logo.svg)](https://www.valenzhealth.com/) - [Who We Serve](https://www.valenzhealth.com/who-we-serve/) - [Solutions](https://www.valenzhealth.com/solutions/member-experience/) - [About Us](https://www.valenzhealth.com/about-us/) - [Resources](https://www.valenzhealth.com/resources/) - [Contact](https://www.valenzhealth.com/contact/) ### [Patients](https://www.valenzhealth.com/who-we-serve/members/) ### Payers - [Employers](https://www.valenzhealth.com/who-we-serve/employers/) - [Taft-Hartley Funds](https://www.valenzhealth.com/who-we-serve/taft-hartley-funds/) ### Providers - [Healthcare Facilities and Providers](https://www.valenzhealth.com/who-we-serve/healthcare-facilities-and-providers/) ### Plans - [Health Plans](https://www.valenzhealth.com/who-we-serve/health-plans/) - [Third-Party Administrators](https://www.valenzhealth.com/who-we-serve/third-party-administrators-tpas/) - [Brokers and Consultants](https://www.valenzhealth.com/who-we-serve/brokers/) - [Stop Loss Producers](https://www.valenzhealth.com/who-we-serve/stop-loss-producers/) #### Partner with Us Discover how Vālenz Health® can simplify the healthcare experience with our innovative solutions. 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Over the past 10 years, specialty drugs have changed dramatically, and employers need to consider how they will manage the rising cost and demand of these drugs. Specialty drugs present a massive risk to employers, especially to self-insured employers. Workers don’t realize how their medical choices impact their employers and how their choices translate to their benefits costs. Let’s explore some of the challenges of specialty drug costs and how to address them. ## Challenges Surrounding the Cost of Specialty Drugs Specialty drugs are often the most effective (and sometimes the only) treatment for certain conditions, but they also come with a higher lifetime cost. For example, therapies for rare conditions can transform how they are treated, but these therapies also drive the increased specialty drug trend. Most of this increase is seen with dermatological drugs, anti-inflammatory drugs, and cancer therapies. Consider Novartis’ therapy Gleevec (imatinib). This therapy is used to treat patients with a rare form of cancer called chronic myelogenous leukemia (CML), which affects specific types of white blood cells. The drug was revolutionary because it [established a new class of drugs called targeted therapies](https://www.cancer.gov/research/progress/discovery/gleevec) that destroy cancer cells while not affecting healthy cells. Although this medication changes patients' lives, it’s also expensive and contributes to the tension between covering life-altering drugs and increasing specialty drug spending. The [Midwest Business Group on Health (MBGH)](https://higherlogicdownload.s3.amazonaws.com/MBGH/ef998dc2-0de9-4904-b6d7-a36b4c0cef4b/UploadedImages/Benchmarking/2022/MBGH_Annual_Survey_Infographic-Final.pdf) conducted annual research on employer health benefits priorities. When asked about top threats to employer-provided benefits, an alarming 94% of respondents cited high-cost pharmacy claims, whereas 89% of respondents cited specialty drug spending.  As the cost of specialty drugs continues to rise, some employers won’t be able to cover these expensive therapies. Measures need to be taken to address specialty drug costs and [additional pain points](https://www.formularywatch.com/view/employers-are-concerned-about-specialty-drug-costs), such as medical and drug cost transparency. ## Strategies to Reduce the Cost of Specialty Drugs [Specialty drugs](https://pharmanewsintel.com/features/combating-specialty-drug-challenges-in-the-pharmaceutical-industry) are considerably more expensive than traditional drugs. They often cost $2,000 a month per patient, but some specialty drugs are even more expensive, ringing in at $6,800 a month or even $100,000 a year. However, these drugs are often the only treatment for a condition, so they’re required for patients to live as fully as possible.  Controlling specialty drug costs is a top priority for employers. The [MBGH survey](https://higherlogicdownload.s3.amazonaws.com/MBGH/ef998dc2-0de9-4904-b6d7-a36b4c0cef4b/UploadedImages/Benchmarking/2022/MBGH_Annual_Survey_Infographic-Final.pdf) found that 64% of respondents want to focus on addressing specialty drug costs, and 74 % want to manage specialty drugs through payment reform. Additionally, 72% of respondents want to steer employees to lower-cost drugs. To guide employees toward lower-cost options, it’s essential to invest in tools and strategies that empower employees while decreasing pharmacy spend. ### Evaluate Wasteful Medications [Wasteful medications](https://blog.valezhealth.com/4-ways-to-reduce-pharmacy-spend) often combine two ingredients into one drug when the individual ingredients are cheaper, thus increasing the cost of the drug. Wasteful medications also include prescription drugs when an over-the-counter alternative is available, and brand-name, high-cost prescription drugs when low-cost generics are available. Wasteful medications are often included within a drug formulary because plan sponsors think employees will be disappointed if a specific prescribed drug isn’t in the formulary. However, these drugs are often prescribed because physicians don’t realize they come at a high cost. By determining which drugs are wasteful and adhering to a formulary that focuses on affordable yet effective medications, pharmacy spend can be reduced, thus benefiting employers and workers. ### Emphasize Early Testing and Preventative Care Focusing on preventative care can help reduce the amount spent on specialty drugs. For example, employers can emphasize early cancer detection screenings and testing for other chronic diseases. Investing in wellness programs and [emphasizing preventative care](https://blog.valenzhealth.com/preventive-care-strategies) is essential to helping workers stay healthy and happy.  ### Invest in a Pharmacy Savings Solution One of the best strategies to reduce the cost of specialty drugs is to invest in a [pharmacy savings solution like Valenz Bluebook Rx](https://www.valenzhealth.com/solutions/member-experience/bluebook-rx/) which includes guidance from a licensed clinical staff and concierge support for members and providers to ensure members have access to cost-effective medications.  Valenz Bluebook Rx also analyzes utilization patterns and engages members with pharmacy savings opportunities tailored to them. The result is high member satisfaction, lower costs, and medical and pharmacy navigation — all in one simple platform. ## Ready to Improve Pharmacy Spending? The cost of specialty drugs is a common pain point for employers and workers, but Vālenz Health® has resources that can help. Get in touch today to find out how to decrease pharmacy spend with our savings solution, [Valenz Bluebook Rx](https://www.healthcarebluebook.com/explore-rx/). ### Connect with Us to Learn More   ![Vālenz Health®](https://blog.valenzhealth.com/hs-fs/hubfs/Valenz%20Logo%20Signature.png?width=48&height=48&name=Valenz%20Logo%20Signature.png) [Vālenz Health®](https://blog.valenzhealth.com/author/valenz-health) Vālenz Health® empowers employers, brokers, payers, and providers to reduce costs, improve quality, and elevate the healthcare experience. Our solutions combine advanced technology, clinical expertise, and extensive cost, quality, and utilization datasets to execute across the entire healthcare journey — connecting insights and action for greater transparency, flexibility, and cost containment within a complex system. By helping our customers and members navigate healthcare with confidence, we support smarter care decisions, strengthen plan performance, and deliver better value for everyone we serve. ## Related Articles [![A doctor's stethoscope lying beside an emptied piggy bank.](https://blog.valenzhealth.com/hubfs/Blog/why-price-transparency-isnt-enough-featured-blog-image.png)](https://blog.valenzhealth.com/incentivizing-smarter-healthcare-choices) ### [Why Price Transparency Isn’t Enough: The Importance of Incentives in Driving Smarter Healthcare Decisions](https://blog.valenzhealth.com/incentivizing-smarter-healthcare-choices) [Christie LaGrange](https://blog.valenzhealth.com/author/christie-lagrange) October 21, 2026 [![](https://blog.valenzhealth.com/hubfs/Social/2026/October/hcbb-vbb-social.png)](https://blog.valenzhealth.com/valenz-bluebook-healthcare-bluebook) ### [From Healthcare Bluebook to Valenz Bluebook: Turning Navigation into Smarter Care Decisions](https://blog.valenzhealth.com/valenz-bluebook-healthcare-bluebook) Two years ago, Vālenz Health® welcomed a new member to our product family: Healthcare Bluebook. [Vālenz Health®](https://blog.valenzhealth.com/author/valenz-health) October 06, 2026 Share Ready to Simplify Self-Insurance? ## Your Journey Starts Here Connect with a Valenz team member to explore the difference our solutions can make for you. ![Vālenz Health](https://www.valenzhealth.com/wp-content/uploads/2025/05/logo.svg) [![Youtube](https://www.valenzhealth.com/wp-content/uploads/2025/06/Icon-Youtube.svg)](https://www.youtube.com/@valenzhealth) [![Linkedin](https://www.valenzhealth.com/wp-content/uploads/2025/06/Icon-Linkedin.svg)](https://www.linkedin.com/company/valenz/) [Login](https://www.valenzhealth.com/user-login/) [Help Center](https://support.valenzhealth.com/hc/en-us) [Trust Center](https://trust.valenzhealth.com/) [Privacy Policy](https://www.valenzhealth.com/privacy-policy/) Cookie Settings [Cookie Policy](https://www.valenzhealth.com/cookie-policy/) [California Privacy Rights Notice](https://www.valenzhealth.com/california-privacy-rights-notice/) [Terms and Conditions](https://www.valenzhealth.com/terms-and-conditions/) 1717 McKinney Ave, Suite 1000, Dallas, TX 75202, USA | [(866) 762-4455](tel:+18667624455) © 2026 Vālenz Health® ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "about" : [ { "@type" : "Thing", "name" : "Pharmacy and Prescription Drugs" }, { "@type" : "Thing", "name" : "Member Experience" } ], "articleBody" : "The cost of specialty drugs is rapidly growing, becoming one of the largest pain points for employers. Over the past 10 years, specialty drugs have changed dramatically, and employers need to consider how they will manage the rising cost and demand of these drugs. Specialty drugs present a massive risk to employers, especially to self-insured employers. Workers don’t realize how their medical choices impact their employers and how their choices translate to their benefits costs. Let’s explore some of the challenges of specialty drug costs and how to address them. Challenges Surrounding the Cost of Specialty Drugs Specialty drugs are often the most effective (and sometimes the only) treatment for certain conditions, but they also come with a higher lifetime cost. For example, therapies for rare conditions can transform how they are treated, but these therapies also drive the increased specialty drug trend. Most of this increase is seen with dermatological drugs, anti-inflammatory drugs, and cancer therapies. Consider Novartis’ therapy Gleevec (imatinib). This therapy is used to treat patients with a rare form of cancer called chronic myelogenous leukemia (CML), which affects specific types of white blood cells. The drug was revolutionary because it established a new class of drugs called targeted therapies that destroy cancer cells while not affecting healthy cells. Although this medication changes patients' lives, it’s also expensive and contributes to the tension between covering life-altering drugs and increasing specialty drug spending. The Midwest Business Group on Health (MBGH) conducted annual research on employer health benefits priorities. When asked about top threats to employer-provided benefits, an alarming 94% of respondents cited high-cost pharmacy claims, whereas 89% of respondents cited specialty drug spending. As the cost of specialty drugs continues to rise, some employers won’t be able to cover these expensive therapies. Measures need to be taken to address specialty drug costs and additional pain points, such as medical and drug cost transparency. Strategies to Reduce the Cost of Specialty Drugs Specialty drugs are considerably more expensive than traditional drugs. They often cost $2,000 a month per patient, but some specialty drugs are even more expensive, ringing in at $6,800 a month or even $100,000 a year. However, these drugs are often the only treatment for a condition, so they’re required for patients to live as fully as possible. Controlling specialty drug costs is a top priority for employers. The MBGH survey found that 64% of respondents want to focus on addressing specialty drug costs, and 74 % want to manage specialty drugs through payment reform. Additionally, 72% of respondents want to steer employees to lower-cost drugs. To guide employees toward lower-cost options, it’s essential to invest in tools and strategies that empower employees while decreasing pharmacy spend. Evaluate Wasteful Medications Wasteful medications often combine two ingredients into one drug when the individual ingredients are cheaper, thus increasing the cost of the drug. Wasteful medications also include prescription drugs when an over-the-counter alternative is available, and brand-name, high-cost prescription drugs when low-cost generics are available. Wasteful medications are often included within a drug formulary because plan sponsors think employees will be disappointed if a specific prescribed drug isn’t in the formulary. However, these drugs are often prescribed because physicians don’t realize they come at a high cost. By determining which drugs are wasteful and adhering to a formulary that focuses on affordable yet effective medications, pharmacy spend can be reduced, thus benefiting employers and workers. Emphasize Early Testing and Preventative Care Focusing on preventative care can help reduce the amount spent on specialty drugs. For example, employers can emphasize early cancer detection screenings and testing for other chronic diseases. Investing in wellness programs and emphasizing preventative care is essential to helping workers stay healthy and happy. Invest in a Pharmacy Savings Solution One of the best strategies to reduce the cost of specialty drugs is to invest in a pharmacy savings solution like Valenz Bluebook Rx which includes guidance from a licensed clinical staff and concierge support for members and providers to ensure members have access to cost-effective medications. Valenz Bluebook Rx also analyzes utilization patterns and engages members with pharmacy savings opportunities tailored to them. The result is high member satisfaction, lower costs, and medical and pharmacy navigation — all in one simple platform. Ready to Improve Pharmacy Spending? The cost of specialty drugs is a common pain point for employers and workers, but Vālenz Health® has resources that can help. Get in touch today to find out how to decrease pharmacy spend with our savings solution, Valenz Bluebook Rx. Connect with Us to Learn More", "articleSection" : [ "Challenges Surrounding the Cost of Specialty Drugs", "Strategies to Reduce the Cost of Specialty Drugs", "Evaluate Wasteful Medications", "Emphasize Early Testing and Preventative Care", "Invest in a Pharmacy Savings Solution", "Ready to Improve Pharmacy Spending?" ], "author" : { "@id" : "https://blog.valenzhealth.com/author/valenz-health", "@type" : "Person", "name" : "Vālenz Health®", "url" : "https://blog.valenzhealth.com/author/valenz-health" }, "dateModified" : "2026-10-01T17:56:35-04:00", "datePublished" : "2023-04-17T07:00:00-04:00", "description" : "The cost of specialty drugs presents a major challenge for employers. Find out how to address this challenge with pharmacy tools and strategies.", "headline" : "Self-Insured Employers View Cost of Specialty Drugs as a Major Challenge", "image" : "https://1769848.fs1.hubspotusercontent-na1.net/hubfs/1769848/Blog/AdobeStock_192808129-3.jpeg", "mainEntityOfPage" : { "@id" : "https://blog.valenzhealth.com/self-insured-employers-view-the-cost-of-specialty-drugs-as-a-major-challenge", "@type" : "WebPage" }, "publisher" : { "@id" : "https://www.valenzhealth.com/", "@type" : "Organization", "areaServed" : "United States of America (USA)", "contactPoint" : { "@type" : "ContactPoint", "areaServed" : "United States of America (USA)", "availableLanguage" : [ "English" ], "contactType" : "Customer Service", "email" : "info@valenzhealth.com", "telephone" : "866-762-4455", "url" : "https://www.valenzhealth.com/contact/" }, "logo" : { "@type" : "ImageObject", "url" : "https://blog.valenzhealth.com/hubfs/web/logo.svg" }, "name" : "Vālenz Health®", "sameAs" : [ "https://www.youtube.com/@valenzhealth", "https://www.linkedin.com/company/valenz/" ], "url" : "https://www.valenzhealth.com/" }, "url" : "https://blog.valenzhealth.com/self-insured-employers-view-the-cost-of-specialty-drugs-as-a-major-challenge", "wordCount" : 781 } ```