Managed Care - July 2008 - (Page 14) MEDICATION MANAGEMENT How Do Employers Cut Rx Costs? Let Us Count the Ways Employers have implemented a number of methods to slow down prescription drug costs, but waiving copayments for chronic conditions has yet to enjoy widespread use By Martin Sipkoff ast year the cost of prescription drugs was the single largest part of health cost increases to employers, according to a recently released survey by Mercer, a national consultancy. As a result, promoting the use of generics and the management of specialty drugs are top priorities to employers — and therefore to health plans and pharmacy benefit managers. “Employers expect health plans to have strategies that help them control the rise in costs,” says Steven E. Wojcik, vice president for policy at the National Business Group on Health. “They look for aggressive, creative strategies.” The Mercer survey found that last year prescription drug benefit costs rose 9.3 percent for employers with 500 or more employees. Overall medical costs rose 5.1 percent — a fourpoint spread. But that’s an improvement: In 2000, drug benefit costs rose 18.3 percent and health benefit costs rose 6.6 percent, a difference of about 12 points. According to Watson Wyatt, another consultancy, health care costs are projected to rise L about 7 percent this year. The increase in drug costs is expected to slow slightly, but remain significant. “Rising drug costs will remain a concern among employers,” says Wojcik. “Innovative ways to help control costs have come into place,” says Lisa Zeitel, senior consultant and co-leader of Mercer’s managed pharmacy business. “Employers want to both encourage compliance through educational programs, which can have a positive effect on overall health care costs, and take steps to encourage the use of generics, which can specifically help control drug costs. They value a twopronged approach.” Techniques such as shifting costs to employees through higher copayments and deductibles have helped slow the increase of health costs for employers. But according to the Mercer survey, many employers “appear to have achieved as high a level of member cost-share as they deem appropriate and are exploring other ways to fine-tune the management of pharmacy costs.” Contributing Editor Martin Sipkoff is a long-time health care journalist. Employers take a variety of actions to help control costs A recent Mercer survey found that employers are most likely to promote generics as a cost management tool in their pharmacy benefit. Among the strategies: Likely actions of employers in cost and quality management of drug benefits “Very likely” or “likely” to take action Promote greater utilization of generic alternatives Improve management of specialty drugs under the prescription drug program Increase employee copayment or coinsurance amounts Implement patient medication therapy adherence/compliance programs Implement an on-site or near-site pharmacy for employees Source: Hot Topics In Health Care Pharmacy Benefits, Mercer 75% 48% 27% 21% 12% 14 MANAGED CARE / JULY 2008
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