Managed Care - January 2008 - (Page 7) SNAPSHOT Copayment rates outpace inflation orkers are definitely paying more for health benefits today than they were in 2000, according to a report from the Employee Benefit Research Institute titled “The Future of Employment-Based Health Benefits: Have Employers Reached a Tipping Point?” Nowhere is that more evident than in a review of prescription drug copayments, which have been outpacing inflation at a fast clip. The Consumer Price Index between 2000 and 2006 increased by 17 percent. During that period, the average copayment for branded drugs on the formulary increased 85 percent, from $13 to $24. The average copayment for nonpreferred branded drugs increased a hefty 124 percent. And it’s not just brand name drugs experiencing the mark up — the average copayment for generic drugs also increased faster than inflation, up 57 percent between 2000 and 2006. What has dropped during this time, despite the sharp increase in copayment levels, is the percentage of consumer health care expenses paid out of pocket, which is at an all time low. W Going nowhere but up Average copayment for prescription drugs, 2000–2006 $80 $70 $60 $50 $40 $30 Preferred drugs $20 $10 Generic drugs $0 2000 2001 2002 2003 2004 2005 2006 Fourth-tier drugs Nonpreferred drugs Source: Kaiser Family Foundation JANUARY 2008 / MANAGED CARE 7
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