3 Outside the Box Ways for Employers to Save Cost on Drug Plans

With rising healthcare costs and unfavorable economic conditions, it is understandable that millions of employers are searching for ways to alleviate drug plan prices for their workers. Many businesses are having a hard enough time as it is staying afloat; unexpected increases in prescription medication can easily send these companies into uncharted financial waters.

Nipping high drug plans in the bud

Luckily, there are ample ways employers can curtail rising pharmaceutical prices, and they are available to small and large businesses alike. Desperate times call for desperate measures, and often times this means getting a bit creative. For instance, promoting healthy diet and exercise choices within the workplace tends to have a far greater impact on employees’ overall health and well-being than most employers realize.

Offering free or discounted memberships to fitness centers and catering health-conscious meals for lunch outings are excellent ways to keep staff from becoming ill. Of course, much more is involved than this, particularly with respect to reducing the increasingly high cost of prescription drug plans.

Feasible, cost-effective options for employers

• Promoting generic drug plans – name brand pharmaceuticals are virtually identical in composition to their cheaper counterparts, and they often come at unnecessarily high and unaffordable prices. You can save your business a lot of money by opting for lower-tiered drug plans.
• The rise of consumer-driven health plans – HSAs and HRAs will likely be at the forefront of the drug plan cost issue for many years to come, as they have been instrumental in keeping escalated healthcare prices in check. Too many employees are unaware of how much they could be saving on their existing drug plans; this is a way to give them more control and accountability.
• Make employees contribute more – although a complete overhaul in existing health plan arrangements is not needed to make a significant change cost-wise, employers who raise their employees’ share in relation to current health care prices have definitely been able to lower their expenses.

Other options include giving workers access to a larger number of health plans, in addition to providing health and wellness incentives. To ensure a successful transition, it is a good idea to clearly communicate these changes to employees, as well as get their opinion on the matter.