Health care and prescription drug costs impact large employers.
A recent survey shows the impact that the cost of prescription drugs has on employers.
The Business Group on Health has released the results of its 2023 survey of large employer health plan strategy and design, which found that rising health care costs are a significant concern for employers. While the top three conditions driving these costs (cancer, musculoskeletal disorders and cardiovascular disease) remained the same as in previous years, more workers are being diagnosed with late-stage illnesses than before the pandemic, likely due postponement of doctor’s appointments. over the previous two years.
As health care needs grow, rising costs raise concerns.
One of the most common concerns among employers is the rising cost of prescription drugs. According to the survey, these costs accounted for more than a fifth of employers’ healthcare costs in 2021. More than 50% of these costs were attributed to specialty drugs.
There are some options employers can take advantage of to reduce these costs, including biosimilar coverage and site-of-care and case management. Despite this, 99% of surveyed employers cited the prescription drug trend as a concern.
The survey also revealed that employers expect to cover 82% of employee coverage in 2022, an increase of 2% from the previous year. As health care and prescription drug costs rise, employers say they are reluctant to pass the rising costs on to their employees and are instead considering fundamental reforms to the delivery system.
The survey includes 135 large employers, which cover more than 18 million workers and was conducted between May and July.