Employee Involvement Is Key to Long-Term Pharmacy Cost Control, Finds Buck Consultants Survey
August 12 2008 - 8:05AM
PR Newswire (US)
NEW YORK, Aug. 12 /PRNewswire-FirstCall/ -- Employers plan to
significantly involve their workers in long-term strategies to
control prescription drug costs. This finding is among the results
of a survey released today by Buck Consultants, an ACS company and
one of the world's leading human resource and benefits consulting
firms. Buck's study, "Understanding Your Strategies for Coping with
the Changing Pharmacy Benefit Landscape," was conducted in the
first quarter of 2008. The goal of the survey was to identify
strategies employers are using to manage their prescription drug
benefits and costs. "Emerging developments in the pharmaceutical
industry are challenging employers to revisit their drug benefit
strategy," said Michael Jacobs, a principal at Buck Consultants.
"Unprecedented availability of inexpensive generics and the
emergence of new, very expensive specialty medications are two of
the trends driving this strategy review." More than 150
organizations participated in the survey. Respondents represent a
broad range of industries and employer size. Current State of
Affairs Essentially all (99%) respondents provide prescription drug
coverage as part of their health care program for active employees.
The two reasons given as most important for providing this coverage
are the health of employees and business competitiveness. Fifty-one
percent of respondents use employee cost sharing as a utilization
management tool. The most common cost-sharing range is 21 percent
to 30 percent (used by 44 percent of respondents). "While the cost
of prescription drug coverage varies widely, more than one-third
(37%) of respondents say pharmacy benefits represent between 16
percent and 20 percent of total health care costs," said Jacobs.
"Another 29 percent indicate pharmacy benefits are more than 21
percent of total health plan costs." When asked about the strengths
and weaknesses of their current pharmacy benefit programs, the
respondents cited "easy pharmacy network access" and "comprehensive
formulary" as the top strengths, and "complete disclosure of
manufacturer revenue" and "complete disclosure of all costs" as
major weaknesses. Benefits and Cost Management Strategies According
to the survey respondents, the most important clinical management
steps they are taking to control pharmacy benefit costs are disease
management, care management and smoking cessation programs. "In
terms of long-term cost control strategies, employers plan on heavy
employee involvement," said Jacobs. The survey found that the
following top the list of strategic initiatives for long-term cost
management: -- Providing employees with tools and information --
Providing employee education -- Worksite wellness and health
activities. Specialty Drugs Fifty-two percent of survey respondents
believed that specialty medications -- complex drugs that are often
injected or infused -- represent 10 percent or less of their total
pharmacy costs. However, a full 28 percent of respondents didn't
know their relative spend on these expensive drugs. "Managing these
specialty drugs will be key to future cost containment strategies
for employers," said Jacobs. "And it's interesting that, when asked
which tools are used to manage specialty medication therapies, less
than 10 percent mentioned either 'discontinuation of unsuccessful
therapy,' 'payer communication' or 'family involvement'." Buck
Consultants, an ACS company, is a leader in human resource and
benefits consulting with more than 1,500 professionals worldwide.
Founded in 1916 to advise clients in establishing and funding some
of the nation's first public and private retirement programs, Buck
is an innovator in the areas of retirement benefits, health and
welfare programs, human capital management, and employee
communication. News and other information about Buck Consultants
are available at http://www.buckconsultants.com/. Buck is an
independent subsidiary of Affiliated Computer Services, Inc. ACS, a
global FORTUNE 500 company with 63,000 people supporting client
operations reaching more than 100 countries, provides business
process outsourcing and information technology solutions to
world-class commercial and government clients. The company's Class
A common stock trades on the New York Stock Exchange under the
symbol "ACS." Learn more about ACS at http://www.acs-inc.com/.
Buck's survey report, "Understanding Your Strategies for Coping
with the Changing Pharmacy Benefit Landscape," is available to the
media by contacting Ed Gadowski at 201-902-2825. It is available to
other interested parties for $100 from Buck's Global Survey
Resources, 500 Plaza Drive, Secaucus, NJ, 07096-1533. Telephone
1-800-887-0509. It also can be ordered online at
http://www.bucksurveys.com/. DATASOURCE: Affiliated Computer
Services, Inc. CONTACT: Ed Gadowski, Media Relations of Buck
Consultants, +1-201-902-2825, ; or Carol DeMatteo, Corporate
Communications of Affiliated Computer Services, Inc.,
+1-214-841-8110, Web site: http://www.acs-inc.com/
http://www.bucksurveys.com/
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