Employee Pharmacy Benefit: 3 Tips for Prescription Savings

By Christie Gouchenour, Manager of Pharmacy Services

When employees are sick or injured and need medical attention, there’s n telling what they may be prescribed to improve their health or help them heal. If your employee pharmacy benefits are not managed effectively, this can certainly lead to higher costs at the pharmacy counter and higher premiums company-wide.

The good news is there are ways to provide the prescriptions your employees need while saving them – and the business – money with every prescription. Here’s how:

1. Go GENERIC

Let employees know that filling a prescription with a generic version of a drug could save them 30-80% over a brand-name product. Generics contain the same ingredients and are just as effective as their brand-name counterparts, and are often made by the original brand manufacturers. Employees can also use their health plans’ formulary (a list of covered and preferred generic and branded prescription drug products) as a guide to avoid paying more for «non-formulary» brand-name drugs.

2. Use MAIL ORDER

There’s a reason people save money at big box stores – it pays to buy in bulk. And the same goes for prescriptions. Mail order shipments, typically for maintenance prescriptions, arrive in 90-day supplies and allow employees to enjoy convenient home delivery at bulk-rate prices.

3. KNOW Your NETWORK

To better control costs, insurance companies have begun creating narrow networks of «preferred» pharmacies. That means certain pharmacy chains or pharmacy locations may be excluded from the pharmacy network. Knowing which pharmacies are in-network for your prescription plan and making sure your employees are also aware will ensure the best prescription drug pricing and lowest out-of-pocket costs.

Helping your employees navigate their prescription drug plans is good business. Reining in prescription drug costs can mean lower out-of-pocket expenses for your employees, and ultimately lower premiums for business owners.