Majority of U.S. Employers Ready to Implement Prescription Savings Tools to Combat Rising Costs

Introduction

In a landscape where healthcare costs continue to rise, recent findings indicate that a significant portion of U.S. employers recognize the importance of implementing prescription savings tools. According to a study by Buzz Health, a healthcare technology company, 94% of HR professionals, CFOs, and benefits leaders express a strong inclination to introduce tools aimed at educating employees about the affordability of prescription medications.

Background

The urgency of these findings is underscored by a troubling trend: many employees remain unaware of existing savings programs. A consumer survey revealed that 67% of American workers have not been informed about tools that could potentially lower their prescription drug costs. Furthermore, for those employees who have faced financial strain due to high prescription prices, 55% reported a lack of communication from employers regarding beneficial programs.

These statistics highlight a disparity between the willingness of employers to support their workforce financially and the actual awareness of the available resources among employees. The failure to bridge this communication gap could have profound consequences on employee well-being and financial stability.

Impacts on Employees

The financial burden of prescription drugs is a harsh reality for many workers. In fact, 43% of full-time employees admitted to making at least one health or financial sacrifice in the past year due to the high costs of prescriptions. Sacrifices ranged from delaying necessary prescriptions and skipping medications to cutting back on essential groceries. Moreover, employees faced with out-of-pocket costs of $35 or more were notably more likely to abandon their medications at the pharmacy counter, showcasing the risk this poses to both health outcomes and employer interests.

The survey results further revealed that 27% of healthcare benefit decision-makers acknowledged their health plans do not sufficiently protect employees from excessive prescription costs, and 47% indicated that no measures had been implemented to improve prescription affordability. This lack of action not only impacts individual employees but could also lead to increased turnover as 42% of decision-makers linked prescription affordability to employee retention.

A Call for Action

Joseph Kleiman, President of Buzz Health, emphasized the critical need for employers to actively communicate existing programs. "Imagine an employee at the pharmacy counter forced to choose between essential medication and groceries, all while a potentially beneficial savings program remains undiscovered within their benefits portal," he stated. This scenario is far too common and preventable with proper outreach and education from employers.

In order to transition from interest to action, compliance documentation has emerged as a pivotal factor. Employers provided with a formal compliance brief—including HIPAA, ERISA, the No Surprises Act, and SOC 2 certification—showed a 90% likelihood of adopting solutions, compared to just 63% for those without such documentation. The emphasis on compliance illustrates the importance of establishing trust in the areas of both legal requirements and financial returns on investment.

Solutions Offered by Buzz Health

To address this gap, Buzz Health has developed RxCompare®, a HITRUST-certified pricing transparency platform. This innovative tool can easily integrate into existing member portals, allowing employees to compare real-time prices from various discount card providers against their insurance copays. In instances where a medication is not covered, the platform automatically highlights the best available cash price.

Employers can utilize RxCompare without incurring any implementation costs, making it an accessible solution in the quest to support employee health and mitigate prescription costs.

Conclusion

Buzz Health's findings reflect a growing acknowledgment among employers of the need to adopt tools aimed at prescription savings and employee education. The benefits of these tools extend beyond mere cost-saving measures; they play a critical role in employee health, morale, and overall productivity. The time is ripe for employers to leverage existing resources and communicate effectively with their workforce, ensuring all employees are informed and empowered to manage their prescription expenses efficiently.