The Impact Of Rising Prescription Drug Costs On Employers And Employees

The rising costs of prescription drugs affect both employers and employees in various ways:

1. Increased Healthcare Costs for Employers: Employers often provide health insurance coverage for their employees, and prescription drug costs are a significant component of healthcare expenses. As drug prices rise, employers face higher premiums for health insurance plans and increased out-of-pocket costs for covering prescription medications for their employees.

2. Financial Strain on Employees: Rising prescription drug costs can directly impact employees' wallets. Even if they have health insurance coverage through their employer, they may face higher co-payments, deductibles, or co-insurance for prescription medications. This can strain employees' finances, particularly for those with chronic conditions who require ongoing medication.

3. Decreased Employee Satisfaction and Productivity: When employees face financial strain due to high prescription drug costs, it can negatively affect their overall job satisfaction and productivity. Concerns about healthcare expenses can lead to stress and distraction at work, reducing employee engagement and performance.

4. Impact on Benefits Packages: To mitigate the rising costs of prescription drugs, some employers may be forced to adjust their benefits packages. This could mean increasing employee contributions for health insurance or reducing coverage for certain medications. Such changes may lead to dissatisfaction among employees and make it harder for employers to attract and retain talent.

5. Healthcare Access and Treatment Adherence: High drug costs can also affect employees' access to necessary medications and their ability to adhere to prescribed treatment regimens. Some employees may forgo filling their prescriptions or skip doses to save money, which can lead to worsened health outcomes and increased healthcare costs in the long run.

6. Shifts in Healthcare Utilization Patterns: Rising prescription drug costs may prompt employees to seek alternative forms of healthcare, such as delaying doctor visits or relying on over-the-counter medications instead of prescription drugs. These shifts in healthcare utilization patterns can have implications for both employees' health outcomes and employers' healthcare expenses.

Overall, the impact of rising prescription drug costs on employers and employees underscores the need for comprehensive solutions to address affordability issues and ensure access to essential medications while also managing healthcare expenses effectively.

At CCHI Re - We can reduce and mitigate the cost of expensive drugs above $350/Script for employers through sourcing and procurement. This delivers a significant savings for the employer and the employee.

If you are interested in seeing exactly how much you are overpaying on prescription drugs and how much you could be saving don't hesitate to get in contact.