According to a recent survey, employers plan to increase their staffs' role in long-term strategies in an effort to control prescription drug costs.
Buck Consultants, an ACS company and resource and benefits consulting firm, conducted the 150-participant survey in the first quarter of 2008. The goal of the survey was to identify strategies employers are using to manage prescription drug benefits and costs.
"Emerging developments in the pharmaceutical industry are challenging employers to revisit their drug benefit strategy," said Michael Jacobs, a principal at Buck Consultants. "Unprecedented availability of inexpensive generics and the emergence of new, very expensive specialty medications are two of the trends driving this strategy review."
Almost all respondents said they provide prescription drug coverage as part of their healthcare program for active employees.
According to the survey, the most important steps that management is taking to control pharmacy benefit costs are disease management, care management and smoking cessation programs.
Strategic initiatives that will be used for long-term cost management include providing employees with tools and information, education and worksite wellness and health activities.
Fifty-one percent of respondents also said they use employee cost sharing as a use management tool.
"While the cost of prescription drug coverage varies widely, more than one-third (37 percent) of respondents say pharmacy benefits represent between 16 percent and 20 percent of total healthcare costs," said Jacobs. "Another 29 percent indicate pharmacy benefits are more than 21 percent of total health plan costs."
When asked about the major weaknesses of their current pharmacy benefit programs, the respondents cited "complete disclosure of manufacturer revenue" and "complete disclosure of all costs."
The survey found that 52 percent of respondents say specialty medications represent 10 percent or less of their total pharmacy costs.
"Managing these specialty drugs will be key to future cost containment strategies for employers," said Jacobs.