Track: Total Rewards

Health care spending continues to rise at an unprecedented rate and spending for prescription drugs has more than quadrupled in the last 15 years. The Department of Health and Human Services projects U.S. drug spending will increase from $200 billion in 2005 to $498 billion in 2016, an increase of 148%. Pharmacy benefits account for approximately 15% of an employer’s overall health care costs and is one of the fastest growing cost components of a $1.6 trillion health industry. Pharmaceutical costs are fast approaching and may surpass the average cost of inpatient services. The rising costs for prescription drugs highlights the need for a better understanding of the pharmaceutical market and the need for better approaches to address rising costs, particularly in the area of specialty and biotech drugs. Offering affordable benefits will enable you to attract and retain quality employees. With the rising costs of health care, particularly in the area of prescription drugs, the question any employer who offers health benefits must ask is “What strategies can I implement to maintain or even lower my prescription drug costs in 2010 and beyond?”