At renewal, pharmacy costs often appear as a single line item. Unfortunately, that number rarely explains what's actually driving the increase.

Over the past several years, pharmacy spend has become one of the fastest-growing components of employer healthcare costs, driven by specialty medications, new weight management therapies, and increasing utilization across several therapeutic categories. For many organizations, pharmacy now represents a greater financial risk than medical claims growth alone.

That's why more employers are taking a closer look at their data before renewal season.

Instead of focusing solely on total pharmacy spend, they're asking better questions:

• Which medications are driving costs?  

• Are specialty drugs responsible for most of the increase?  

• Are employees utilizing lower-cost alternatives when appropriate?

• Are current pharmacy programs delivering measurable value?  

• Do we have strategies that improve value while controlling costs?  

The answers can have a significant impact.

PwC projects the overall medical cost trend for employer-sponsored health plans will remain at 8.5% in 2026, with pharmacy costs continuing to outpace the broader trend. Specialty medications, expanding GLP-1 use, and other high-cost therapies remain significant drivers of pharmacy spending. Understanding what's behind those increases gives employers more options before renewal discussions begin.

Data changes that conversation.

When organizations understand what's driving pharmacy utilization and spending, they're better equipped to evaluate their pharmacy strategy, assess vendor performance, identify opportunities to improve plan design, and determine whether their current approach is delivering the value they expect.

The goal isn't simply to spend less. It's to make more informed decisions about where healthcare dollars are producing value and where opportunities for improvement exist.

The organizations finding the greatest opportunities aren't waiting for renewal reports to tell them what happened. They're using data throughout the year to understand what's driving pharmacy spend, identify opportunities earlier, and make more informed decisions before renewal arrives.