RxBenefits’ Chief Executive Officer, Bryan Statham, shared nine reasons why employers should consider carving-out pharmacy benefits in an article for Human Resource Executive. The article includes a comparison of what it means to carve-out pharmacy benefits and a simple checklist to help employers decide if carving-out makes sense for them. Following is a brief excerpt; you can read the full article here.
Healthcare Costs Rising: Why Carving Out Pharmacy Benefits Is Worth Considering
Check out nine questions to consider when thinking about pharmacy benefits.
Benefits are often considered a major differentiator and talent draw for companies across the board. However, healthcare benefits are one of the highest expenses incurred by businesses in the United States, and experts predict that healthcare costs will continue to increase in 2021–a fact that may be exacerbated as our communities and healthcare system grapple with the coronavirus pandemic.
Covered California, the state’s health insurance marketplace, predicts 2021 premium increases will rise anywhere between 4 to 40% from COVID-19 alone. Pharmacy spend, in particular, is expected to grow 6.1%+ year-over-year for the next seven years. Pharmacy benefit cost management has quickly moved to a high priority line item for businesses and HR professionals, while simultaneously becoming ever more important to maintaining a healthy, happy workforce. Preparing for potential increases in pharmacy costs is critical for businesses and HR leaders.
As a self-insured employer, there are many roads you can take toward reducing benefits costs. One option worth considering is carving out pharmacy benefits from your traditional healthcare plan–a technique that enables you to significantly reduce costs without reducing value for your employees.
Continue reading the full article to learn more and see the simple checklist to help your clients decide if carving-out pharmacy benefits makes sense for their objectives.