Pharmacy services, which are generally covered by group health insurance, can account for a significant number of a group’s claims. In fact, they are usually 15 to 25% of a group’s healthcare expense. As pharmacy is becoming more of a claim spend for employers, many business leaders are feeling concerned about the cost of drugs for their employees. According to the 2024 Large Employer Health Care Strategy Survey, “Ninety-two percent of employers are concerned or very concerned about high-cost drugs in the pipeline, and 91% are concerned or very concerned about pharmacy cost trend overall.”
So, is there anything you can do as a business leader? A huge component of this is helping turn your employees into conscious consumers when it comes to healthcare. When there’s a knowledge gap in your employees’ understanding of health insurance and pharmacy, it can be costly to both them and your business. It may not initially seem expensive to the employee, but it affects the employer in the long run as rates continue to rise. It is better if your employees are working toward one goal!
Consider brand name vs. generic drugs. Take this as a tangible example: If you go to the grocery store, you might have the option to buy a $2 milk, a middle-of-the-line $5 milk, or the most expensive $8 milk. Many people would choose the $5 milk, right? Many employees don’t understand that you can ask questions about your pharmacy options. There may be generic drugs that the doctor can prescribe instead. If your employees understand that, they’ll feel empowered to make better decisions, all while helping you when it comes to renewal time.
Another example could be the difference between an urgent care visit and an emergency room visit. The cost difference can be thousands of dollars without employees even realizing it. After all, nearly half of adults don’t feel confident in their understanding of health insurance. At The Accel Group, we are proud to engage in employee education meetings with our group’s employees to help them truly comprehend their benefits package, whether it be pharmacy costs or ancillary benefits their employer may provide.
If you’re interested in reviewing your group benefits package or health plan options, we’d be happy to connect with you! Feel free to reach out to me at 319.352.2880 or mthomsen@acceladvantage.com.