Stepping into Lower Drug Costs

Step therapy can save money but some say there can be a downside. One way to keep your health benefit plan’s overall costs lower is to encourage employees to choose generic drugs whenever possible. The U. S. healthcare system saved $1.68 trillion from 2005 to 2014 by using generic drugs, according to the IMS Institute…

Therapeutic Substitution for Generic Drugs

Using generic instead of brand-name drugs can save individuals, insurers and employers significant money. However, a new study indicates that billions more could be saved through therapeutic substitution. Generic drugs have the same active ingredients as prescription drugs, but cost significantly less. Therapeutic substitution differs from using generics. It is the practice of using the…

How Pharmacy Benefit Managers Control Your Drug Costs

Pharmacy benefit managers, or PBMs, have nine basic tools to control the cost of prescription drugs: 1.   Pharmacy payments. PBMs use their clout to negotiate volume discounts with certain pharmacies, and then steer plan members to these pharmacies. 2.   Generic substitutions. Generic drugs usually cost much less than their branded equivalents. PBMs use…

How Pharmacy Benefit Managers Help You Control Drug Costs

Here’s a brief overview of how pharmacy benefit managers (PBMs) can help control employee prescription drug costs. Your PBM plays an important role in helping control employee drug expenses. PBMs manage approximately 70 percent of the 3 billion+ prescriptions dispensed each year in the U.S. Today, approximately 95 percent of patients with drug coverage receive…