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Health Plan Savings Strategy Requires Rx Focus

05/26/16

  10:31:00 pm, by MedBen5   , 254 words,  
Categories: News, Prescription, Discounts, Health Plan Management, Reporting, Cost savings

Health Plan Savings Strategy Requires Rx Focus

pills

One risks sounding like a broken record (or a corrupted MP3 file), but it really is important to the long-term financial health of your pharmacy plan to stress the large and ever-widening gap between brand-name and generic drug costs. As drug costs continue to rise, MedBen believes that an emphasis on generic prescriptions is key to keeping plan costs in check. Toward that goal, we encourage clients to promote generic usage whenever possible... and plan members appear to be in agreement.

MedBen prides itself on keeping client drug costs well below national spending trends. A recent report by S&P Global found that while overall national health care cost rose 6.5% in 2015, drug costs alone increased by 15.8%, and brand name drugs jumped 19.2%. By contrast, MedBen pharmacy plans experienced only a 4.1% trend — due in no small part to the smart use of generic medications.

It's also worth pointing out that, while generics typically cost substantially less than than their brand-name equivalents, MedBen strives to lower generic costs even further. Last year, our average discount on retail generic drugs was 76.9%, and 82.3% for mail order generic drugs. Given these numbers, it should come as no surprise that when a generic version of a brand-name drug is available, the average substitution rate by plan members is an impressive 97.7%.

As prescription drug use increases, a savings strategy must focus on ways to control pharmacy costs. To learn about the methods MedBen employs to help clients achieve their Rx spending objectives, contact Vice President of Sales & Marketing Brian Fargus at bfargus@medben.com.

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