In an attempt to save on costs resulting from the Patient Protection and Affordable Care Act (ACA), a substantially fewer percentage of business owners say they will continue offering prescriptions drug benefits to workers who are eligible to receive Medicare.
According to the poll, which was conducted by human resources firm Buck Consultants, 75 percent of respondents in last year's survey indicated they would provide their Medicare-eligible workers with financial assistance so they could purchase prescription drugs moving forward. However, in this most recent poll, just 55 percent said they would maintain this plan.
Paul Burns, principal for the New York City-based consulting firm, noted business owners have some options available to them so that they can keep their employee benefit expenses low.
"For example, since Retiree Drug Subsidy payments are no longer tax-exempt and do not keep pace with rising drug costs, some employers are considering moving to an Employer-Group Waiver Plan to take advantage of additional subsidies available as a result of the Affordable Care Act," said Burns.
Additionally, the poll found that a larger number of employers are more frequently using third-party pharmacy benefit managers (PBMs) to help pay for prescription drug plans, totaling 61 percent of employers from 57 percent in 2011 and just over 45 percent in 2009, before the ACA was signed into law.
"With many medications having double-digit price increases and with the continued consolidation among PBMs, this is a buyer's market for PBM pricing," said Burns. "Employers should be aggressive in their negotiations. Any PBM contract that is 18-24 months old should be reviewed for pricing competitiveness as well as up-to-date contractual language."
In March, the U.S. Department of Health and Human Services stated that more than 6 million people with Medicare saved approximately $6 billion on prescription drugs, all thanks to the ACA.
