More Employers Embrace Cost-Sharing

July 30, 2009 (PLANSPONSOR.com) - More employers are using cost sharing as a utilization management tool in their prescription drug programs, according to a new survey.

Buck's "Prescription Drug Benefit Survey", completed in July 2009, found that more than three-quarters (76%) of 140 respondent firms use employee cost sharing as a utilization management tool, up substantially from 51% a year ago. According to the survey, the most common target cost-sharing range is 11% to 20% of claim costs (used by 39%of respondents).

"This year, plan sponsors are clearly focused on controlling costs in response to budget cuts," said Michael Jacobs, a principal and national clinical practice leader at Buck Consultants, in a news release.

Nearly all (99%) respondents provide prescription drug coverage as part of their health care program for active employees. The two reasons given as most important for providing this coverage are:

• the health of employees
• business competitiveness

"While the cost of prescription drug coverage varies widely, 30 percent, or the largest group of respondents, said pharmacy benefits represent between 11 percent and 15 percent of total health care costs," said Jacobs. "This is down from last year's survey, when the largest group indicated their drug benefits made up between 16 percent and 20 percent of total health care costs. This may be the result of many expensive brand medications moving off-patent and being replaced by lower-cost generics."