Inflation facts
If left unchecked, brand drug inflation could mean you're paying more than you should for the prescription drugs your members need.
Historically, year-over-year brand drug price increases have jeopardized the financial health of plans and members' access to care.
What is the Inflation Protection Program?
The Inflation ProtectionSM Program, part of the SafeGuardRx® platform, was created to protect clients from the impact of shockingly high brand drug inflation. Since the program's introduction in 2015, it has provided tangible value to enrolled plans each year.
Plan Benefits
Inflation protection caps
After you enroll, we provide you with an Inflation Rate Guarantee—or cap—for all brand drug products. Through this program, we take on your plan's risk and guarantee that your brand-drug inflation will not exceed a set percentage. If it does, we'll pay you back.
- If brand average wholesale price (AWP) inflation exceeds cap, clients receive a payment from us.
- If brand AWP inflation stays below the cap, clients see lower overall drug spend.
Advocacy efforts
We are advocating for responsible drug pricing on behalf of you and your members across the supply chain and on Capitol Hill. Since the launch of the program, brand-drug inflation has dropped to historic lows. We continue our efforts to advocate for plans and members year after year.
Frequently Asked Questions
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For the Inflation Rate Guarantee, how is the individual client inflation cap determined?
The Inflation Rate Guarantee is specific to each client and is determined using that client's projected inflation rate, based on their unique drug mix and historical AWP inflation.
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Will clients receive a new Inflation Protection offer every year?
Each year, Evernorth® will re-evaluate the Inflation Protection Program and existing client offers. If an adjustment is deemed necessary, it will be communicated to the client, otherwise the existing Inflation Protection Program offer will remain in place.
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Is financial risk limited by setting a maximum limit on payments?
Our standard Inflation Protection Program does not limit a client's reimbursement potential. This information is available to clients via the standard Inflation Protection reporting available, separate and distinct from rebate reporting.