Generics Slow Growth in Workers' Compensation Drug Spending in 2007

Growth in spending by workers’ compensation plans on prescription drugs slowed to a 6.0% increase over 2006, according to the annual Express Scripts Workers’ Compensation Drug Trend Report. The increase in 2006 over 2005 was 11.4%. Contributing significantly to the 2007 spending slow-down was a record-setting, fourth quarter generic utilization rate of 68.9% by workers’ compensation plans. "We slowed the upward trend in prescription drug spending for Express Scripts Workers’ Compensation clients by focusing on our ‘Mix Matters’ strategy, where we drive use of the most cost-effective delivery channel and mix of brand and generic drugs to achieve the lowest net cost for our clients,” explained Vicki Wheeler, vice president, workers’ compensation. "This helps us accomplish our goal to make the use of prescription drugs safer and more affordable for our workers’ compensation clients.” Express Scripts achieved its record-setting utilization of generic drugs by workers’ compensation clients through: Improved management of both single-source and multi-source brand drug utilization by Express Scripts’ clinical programs; Tighter management of approved drug lists by consulting with clinicians for detailed analysis and recommendations on generic substitutions; Promotion of first-line generic drugs through step therapy programs that require use of therapeutically-equivalent generic drug alternatives before a brand is used; and, Communication through the Express Scripts Physician Outreach Program (POP) with prescribers who write dispense-as-written (DAW) prescriptions, in an effort to encourage increased use of chemically-equivalent generic drug alternatives. The 2007 Drug Trend Report also reports that use of Express Scripts’ Workers’ Compensation retail network by injured workers reached 89.9% in the fourth quarter 2007. This was achieved by leveraging direct relationships with pharmacies and facilitating increased use of on-line claim submissions by pharmacies. In 2007, Express Scripts saw more client interest in home delivery, which adds safety and increased convenience for injured workers being served through Express Scripts clients’ workers’ compensation programs. "Home delivery is a great opportunity to help clients further control costs,” Wheeler says. "Our goal is to remove ‘waste.’ We define waste as extra expense spent on workers’ compensation claims when no additional health benefits are available for the client or the injured worker,” Wheeler says. "Medical costs in workers’ compensation increased 15% from 2000-2006. Approximately 15% of those medical costs are pharmacy drug expenses. Our Workers’ Compensation Drug Trend Report shows that we understand the unique challenges of workers’ compensation and can help companies control their costs and serve injured workers,” Wheeler adds. The Express Scripts’ 2007 Drug Trend Report is available at www.express-scripts.com/workerscompensation. Express Scripts, Inc. (Nasdaq: ESRX) is one of the largest PBM companies in North America, providing PBM services to thousands of client groups, including managed-care organizations, insurance carriers, employers, third-party administrators, public sector, workers compensation, and union-sponsored benefit plans. Express Scripts provides integrated PBM services, including network-pharmacy claims processing, home delivery services, benefit-design consultation, drug-utilization review, formulary management, and medical-and drug-data analysis services. The Company also distributes a full range of biopharmaceutical products directly to patients or their physicians, and provides extensive cost-management and patient-care services. Express Scripts is headquartered in St. Louis, Missouri. More information can be found at http://www.express-scripts.com, which includes expanded investor information and resources.