When employers see prescription drug costs rising steadily in their Claims Experience reports, it's not often clear why it's happening.
The immediate reaction is to ask:
"Are my employees falling sick more often?" Or... "Is there a way to control these rising costs without jeopardizing the health of my employees?"
While the overall health care costs have an inflation trend of ~11%, prescription drugs alone are trending at an increase of ~12%.
Rising drug costs may not be because of a sicker workplace. Often, the rise in costs are due to three variables:
- Rising costs of prescriptions;
- Introduction of expensive drugs in the market to treat rare conditions and severe ailments (called Specialty Drugs); and
- Drugs still being under patent protection.
There definitely are many ways around this necessary expense of prescription drugs. A few examples are:
- Designing plans with restricted formularies;
- Implementing specialty drug management plans; or
- Creating high need coverage plans.
At Revolution, we'll analyze your group's claims experience to assist you in creating the plan your employees need – while also keeping a rein on rising costs.