Pharmacy spend continues to be a hot topic for employer groups as they attempt to flatten the cost trends, but specialty medication costs seem to be winning most battles! As an employer, you may ask yourself, “What can we do?” How many more tiers must we add to manage our costs, which shifts costs to the backs of our employees?
Many groups are continuing to feel the pain of increased pharmacy use and trend, so much that it is now costing them in their stop loss reinsurance bucket, as well. Budgeting for $100,000 medications is not in the cards for many employers; therefore, they need to purchase additional insurance – on top of increasing spend – to mitigate their risk.
It’s a double whammy! If you have maximized contract terms and implemented the most aggressive mail order or 90-day incentives, then here are a few other considerations:
At the end of the day, more employee education around options will help us ride the current wave of pharmacy spend while avoiding a complete wipeout!