Study Reveals HR Professionals' Concerns Over Rising Prescription Drug Costs and Alternative Funding Risks
TL;DR
HR professionals can gain valuable insights into managing prescription drug costs to maintain a competitive edge in providing affordable health insurance.
The study provides detailed information on the rising cost of specialty drugs and the impact on healthcare plans and self-funded employers.
By understanding emerging trends in managing prescription costs, HR professionals can better support employees and their organizations' healthcare needs.
The report reveals the significant impact of specialty drugs on healthcare costs, offering a thought-provoking perspective on the current healthcare landscape.
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The escalating cost of healthcare, particularly prescription medications, remains a critical challenge for human resources professionals, with 88% expressing concerns about providing affordable health insurance coverage to employees. This cost increase is primarily driven by specialty drugs, with projections estimating these medications will reach approximately $311 billion in 2023, representing three-quarters of all drugs currently in development.
In response to these mounting concerns, Aimed Alliance, the Alliance for Patient Access, and HR.com's Research Institute conducted a comprehensive study examining how HR professionals are addressing prescription drug costs. The resulting 32-page research report, titled "Managing Prescription Drug Costs 2023-24," along with an accompanying infographic, provides valuable insights into emerging trends and their impact on both employees and organizations. These resources are available for free download at https://web.hr.com/82bna.
The study reveals significant gaps in employer understanding of alternative funding programs (AFPs), with only 46% of respondents familiar with these cost-reduction strategies. More concerning are the legal implications associated with AFPs, particularly regarding specialty drugs obtained through international channels. Self-funded health plans show higher adoption rates of these programs, with 28% of self-insured employers currently using AFPs compared to 16% overall.
Debbie McGrath, Chief Instigator and CEO of HR.com, emphasized the complexity of the situation, stating that the impact of healthcare plans and specialty drugs is forcing employers to think creatively about expense reduction while carefully examining the risks and regulations associated with alternative approaches. The research findings underscore the need for greater awareness and understanding of both the financial pressures and regulatory complexities surrounding prescription drug coverage in employer-sponsored health plans.
Curated from Newsworthy.ai
