ach fall, Employers Health begins its work to prepare for the annual market check. This includes utilizing a third party to benchmark our contract, analyzing and projecting mid-year data and synthesizing the results of the previous sales year. Our goal is to attain the most aggressive and market competitive pricing for Employers Health clients, while maintaining the clean and straightforward contract our clients and their consultants have come to appreciate.
For the 2022 market check, Employers Health secured pricing improvements that average high-single to low-double digits. While we desire to deliver these results in early summer, shifting market dynamics demanded further negotiation for better terms. This required more time but resulted in even more aggressive pricing.
While some direct contracts and other coalition arrangements also provide a market check, one of the big differences for Employers Health is that we’re negotiating with more leverage each year due to our significant growth. As the market consolidates, individual entities lose negotiating leverage if they are not part of a larger group. We see this not only play out in the employer market, but with PBMs and health plans as they look for ways to purchase together and improve their respective market positions.
As the 2022 market check comes to a close, our team will begin preparing for 2023 negotiations. We expect there to be numerous discussions around the specialty space again, with a focus on the individual prices for specialty generics and how the PBMs ultimately will handle new biosimilars that are expected to come to market. As an employer-led purchasing coalition, we’ll look to find the right combination of price, flexibility and clinical management that provides the most benefit to our shared clients!