Soaring prescription drug costs are a key driver of rising healthcare premiums for both employers and employees. As of July 2021, pharmaceutical companies increased the prices of 67 prescription drugs by an average of 3.5%. These increases are over and above the 800 drugs that rose in price in January.

Understandably, employers are concerned about the rising prices of prescription drugs. A single high-cost drug can potentially increase a company’s healthcare premium for the year. It can also consume a large portion of an employee’s monthly budget. The cost for some medications, such as those used to treat some cancers and HIV, are onerous for employers, in the form of expensive claims, and employees, due to high copays and out of pocket expenses. Fortunately, you can help reduce your prescription drug spend — and save your employees money — by educating your workforce on their benefits and empowering them to maximize those benefits while getting the care they need. 

Employee Education  

One of the best ways to reduce prescription drug costs is by communicating to employees how and where they can find reasonably priced medications. They may not always be aware that the pharmacy where they usually fill their prescriptions might not offer the lowest prices. While there are more ways than ever before to find lower-cost drugs, employees may not realize that they have the option to shop around for the best price on their medications.

Generics Help Save Money

For instance, let’s say an employee visits their primary care doctor and receives a prescription for a specific medication. That employee might not think to ask if there’s a generic alternative  — but they should. Generic drugs are proven to be just as safe and effective as their name-brand counterparts, and making a simple swap from a brand-name to a generic medication could save an employee hundreds of dollars — up to $222 a year, on average. 

Prior to filling a prescription, employees may save money by asking two simple questions:

• Is this drug available in a generic version? Or,
• Is there another, low-cost generic drug available that works the same?

Cut Costs with Coupons

Some drug makers offer coupons to help offset the costs of certain prescription medications. A pharmacy discount coupon, for example, can deliver savings of up to 80% off the retail price of a prescription drug. Even with insurance, an employee may still save money by using a pharmacy coupon. These coupons can sometimes lower the cost of drugs that aren’t covered by insurance, or those with insurance restrictions, such as quantity limits or prior authorizations. At times, the final price with a pharmacy discount coupon may even be lower than an employee’s insurance copay. 

Manufacturer’s coupons are another potential money-saving option. These coupons are usually issued directly by the drug manufacturer, and are typically for new drugs or those that are only available in a brand-name version. Although manufacturer’s coupons can help reduce out-of-pocket costs, encourage employees to read the fine print. Some manufacturer’s coupons come with a catch, such as activation and insurance coverage requirements. 

Different coupons offer varying types of discounts, and they frequently change. Employees should always check to make sure they have the most up-to-date coupons when filling their prescriptions.

Mail Order Delivers Convenience and Savings 

Employees who choose to use mail-order prescription benefits not only enjoy the convenience of having their medications delivered to their door, they also save time and money. In fact, they can get up to a 90-day supply of certain medications with lower out-of-pocket costs than a retail pharmacy. 

Employees must provide a prescription from their doctor to activate the mail-order service. Once their prescriptions are filled and they’ve verified their identity, employees can manage their medications and deliveries using a convenient online dashboard.

Pay Less with Apps

Popular, free prescription drug apps like GoodRx and WellRx can help your employees find discounts, coupons and lower-cost pharmacies in their area, as well as comparison shop for the best price on their medications. Many apps are accepted at thousands of pharmacies and offer potentially significant cost savings on a variety of prescription drugs. All employees need to do is download an app to their mobile phone to start saving.

Empower Your Employees

Your benefits package is designed to help employees get the care they need, when they need it. In addition, it’s in your best interest  — and theirs — to encourage your employees to take charge of their healthcare and ask questions to ensure they understand why they’re being prescribed certain medications, how those drugs interact with others they may be taking, and whether they need to take a specific drug at all. By empowering your employees to look out for their health and ensure they’re getting the best standard of care, to take advantage of discounts and cost savings, and to make the most of their benefits, you can help them stay healthy and save money while reducing the impact on your health insurance premiums. And here’s an added bonus: A healthy workforce is a productive workforce, which is good for your employees and your bottom line.