As dermatological treatments move up the ranking of conditions with the highest paid drug claims, they’ve become increasingly significant for private drug plan sponsors, according to Frances Lehun, a pharmacist with pharmaceutical expertise in high-cost drug management at Beneva.
During a session at the 2025 Face to Face Drug Plan Management Forum, she said this shift — from third place in 2023 to second place in 2024 — reflects the growing prevalence of chronic skin conditions and the expanding range of available therapies.
Chronic skin conditions — including acne, alopecia areata, eczema, psoriasis and rosacea — often present as moderate to severe cases that are incurable but manageable. These disorders have a profound impact on patients’ quality of life, said Lehun, affecting physical health through pain, discomfort and itchiness, as well as psychological well-being, with the risk of depression and anxiety notably higher.
Read: A closer look at how chronic conditions are impacting benefits plans
Some of the comorbidities linked to these conditions, she noted, are dermatitis, which is frequently associated with asthma and allergies; psoriasis, which can progress to psoriatic arthritis in about 30 per cent of cases; and chronic urticaria (hives), which often appears without a clear cause, making management more challenging.
With more innovative treatments entering the market, plan sponsors are faced with new challenges in managing costs and ensuring access to effective care, said Lehun, noting the financial impact is substantial and underscores the importance of developing strategies to balance patient needs with sustainable drug plan management.
Indeed, some treatment costs range between $15,000 and $50,000 per patient annually, she said, with the broadening of drug indications and earlier initiation of biologics further increasing the number of patients eligible for these treatments.
Read: Innovative drugs helping plan members manage chronic conditions
Controlling costs in this rapidly changing environment requires a multifaceted approach, said Lehun, suggesting plan sponsors implement mandatory generic substitution and promote biosimilars, both of which can offer substantial savings. Prior authorization and step therapy protocols help ensure medications are used appropriately and efficiently, she noted, allowing patients quicker access to second-line treatments when first-line options fail.
Looking ahead, Lehun said the pipeline for new dermatological treatments is robust, with several treatments in development that promise to further expand treatment options for patients. And while chronic skin conditions represent a growing challenge, driven by advances in therapy and broader access to treatment, effective drug plan management is essential to manage this trend, she added.
Read more coverage of the 2025 Face to Face Drug Plan Management Forum.