As prescription drug prices continue to rise, employers are finding greater need to initiate expense saving methods to keep costs controlled.
The International Foundation of Employee Benefit Plans conducted a survey asking employers how they manage high prescription drug costs. The group received responses from 577 human resources and benefits professionals, trustees, administrators and industry experts, representing a wide array of U.S. organizations from almost 20 different industries.
Here is a list of the most popular expense saving methods, ranked by percent of employers who reported using the technique. A total of 16 methods were reported, although the list includes a tie, which is represented by a bullet point and results in a numerical listing of 15.
- Tiered pricing — 89 percent
- Mail-order drug service — 82 percent
- Drug formulary lists — 71 percent
- Pharmacy benefit manager — 63 percent
- Step therapy/therapeutic substitution — 46 percent
- Prior authorization/utilization management — 38 percent
- Mandated use of generic drugs when available — 37 percent
- Preferred provider networks — 35 percent
- Drug card program — 28 percent
- Preferential pricing agreements (negotiated with pharmacies/manufacturers) — 18 percent
- Limits for specialty and biotech drugs — 18 percent
- Discontinued or limited coverage of cosmetic/lifestyle drugs — 17 percent
- On-site or near-site pharmacy — 16 percent
- Coverage of select over-the-counter drugs — 15 percent
- Collective purchasing groups — 14 percent
- Reference-based pricing/cap on certain drugs — 6 percent
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