Prescription Drug Coverage: The Overlooked Financial Risk in Employee Benefits
Prescription drug coverage holds a unique position in the realm of employee benefits. Even though it's one of the most frequently used perks, it's often bundled with other services and not given the detailed attention it merits.
Most employees will use their prescription drug benefit multiple times yearly, if not monthly. This contrasts with other benefits that might only be used occasionally. Despite its regular use, many employers don't or can't analyze this coverage when reviewing healthcare offerings for their teams.
By not assessing prescription claims in detail, employers may be missing out on potential cost-saving and cost-containment strategies. The world of prescription drugs is vast, and prices can vary significantly. Strategies like drug tiering, generic substitution, or specialized pharmacy networks can offer significant savings. Without proper attention, these savings opportunities can be missed, possibly leading to unnecessary financial strain on the employer and the employee.
It is critical to ensure that the prescription drug benefit is optimized. A thorough assessment can ensure employees can access their medications without incurring exorbitant costs. By doing so, they not only help employees but also keep the company's healthcare expenses in check.
The prescription drug benefit is more than another line item in the benefits package. It represents a significant area of financial risk if not managed correctly. Plan sponsors must be proactive in overseeing this benefit to promote their employees' health and financial well-being while maintaining fiscal responsibility for the organization.
Take control of your pharmacy benefits with proactive strategies that align with your health plan's financial goals. Contact APC today to learn how we can help navigate the complexities of drug pricing, optimize PBM selection, and protect your health plan's bottom line.
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