3 Cost-Saving Strategies to Reduce Your Company's Pharmacy Costs

Prescription drug prices in the U.S. continue to climb, averaging 278% higher than those in other developed countries. Brand-name drugs show a staggering 422% increase*. This hike is hitting employers hard, driving up their company costs as pharmacy expenses rise.

Why do these costs escalate??

More people are dealing with chronic conditions, leading to an increased demand for medications, while specialty meds are becoming notably more expensive.??

While there is no quick fix for escalating pharmacy costs, here are three strategies that offer some relief now and can help save money in the long run:

1. Data for Better Decision Making: Harnessing data analytics can be a game-changer. By tracking drug utilization patterns and identifying cost-driving factors, you can craft targeted strategies to cut expenses. ? For instance, understanding where your company’s drug spend is the highest can guide efforts like promoting generic drug use, leveraging their cost-effectiveness to drive savings without sacrificing quality treatment.?
2. Educate Your Employees: Make sure your team understands the benefits of using preferred pharmacies, sticking to the formulary, and opting for generics. By promoting these cost-conscious choices, you can maximize the effectiveness of your pharmacy benefits and ensure employees have access to necessary medications without overspending.?
3. Choose the Right PBM: While it may seem obvious, evaluating your Pharmacy Benefits Manager (PBM) is essential. Look for transparency in pricing models and a proven track record of cost management. Opt for PBMs that provide clear, straightforward pricing and detailed reporting.

These strategies offer a solid starting point, however, there's always more you can do to reach your company's financial goals. Contact us to see how we can team up to manage and reduce your pharmacy spending.?

*Sources: https://www.rand.org/pubs/research_reports/RRA788-3.html?