Help employees handle high deductibles with smarter prescription choices

High-deductible health plans have become a popular benefit option, especially among small businesses, because they help reduce the employer’s monthly premium costs. However, these plans often shift more financial responsibility to employees, resulting in significantly higher out-of-pocket expenses for prescriptions and other medical care. as a result of, High health care costs It places increasing pressure on household budgets.

As deductibles increase along with prescription drug costs, the associated financial challenges can significantly strain employee budgets. For employers, taking steps to ease these burdens is more than a goodwill gesture – it’s a business strategy. Supporting employees with tools and benefits that make healthcare affordable can improve retention, enhance productivity and position the organization as an employer of choice in a competitive market. Companies enhance workforce well-being and long-term business performance by providing employees with the resources to access and afford the care they need.

said Matthew Harefield, co-founder and CEO BuzzRxa free prescription savings platform, explained during a recent conversation that employers can help their employees navigate high deductibles in different ways.

Encouraging the use of generic medicines

When it comes to prescriptions, Harefeld advises that one of the most impactful actions employers can take is to encourage the use of generic drugs. “The cost of generic drugs is on average 80 to 85% less “It’s the equivalent of a brand name,” he explains.

“The FDA still requires that generic drugs have the same active ingredient, safety and effectiveness as brand-name drugs. When generic drugs are not available, there are often biosimilar drugs that treat the same condition, but with a different active ingredient and at a much lower cost than more expensive, well-known brands.”

Although generic alternatives are not available for every brand-name drug, employers can work with a pharmacy benefit manager (PBM) to create a formulary that prioritizes generic drugs. Plans can also use step therapy, which requires use of the generic drug before switching to a more expensive brand-name version.

Take advantage of prescription discount programs

Hairfield also points out that prescription discount programs, like those offered by BuzzRx, can reduce employees’ prescription drug costs. “Our prescription discount program is completely free, and employees can use it to fill gaps in insurance coverage and save on additional costs,” he explains.

“Depending on the drug, the negotiated deductible rate that your employees will pay at the pharmacy with BuzzRx may be lower than what they would pay with copay or coinsurance. This is especially true for high-deductible plans, which can have higher out-of-pocket costs for higher-tier medications. By providing a free, easy-to-use prescription discount card, employees are given another useful opportunity to save on their health care costs.”

According to Harefield, BuzzRx users can save up to 80% on the retail price of prescription drugs when they present their card at one of more than 60,000 participating pharmacies across the country. Using insurance or a debit card ensures employees always receive the best rate available.

Encourage HSA contributions

Employees in high-deductible plans often have another resource available: Health Savings Accounts (HSAs). As Harefield explains, these accounts can be a valuable way to save on medical expenses.

“With an HSA, neither the money you contribute to a savings account is taxed, nor is the interest you earn while it’s in the account. As long as you use it for qualified medical expenses, which include prescription drugs, you won’t pay any taxes when the money is withdrawn,” says Herfield.

“This essentially allows employees to keep more of their take-home pay that can be used for medical expenses, rather than having it taxed before they pay for medical care. Best of all, unused funds are replenished, and employees can keep their contributions even if they change jobs.”

Employers that offer HSA-eligible high-deductible health plans should offer resources to help their employees set up an HSA to cover their out-of-pocket expenses. Many employers allow direct contributions to be made through payroll deduction to simplify the process, and some even offer matching contributions.

Motivating employee wellness

Finally, Harefeld recommends that employers incentivize a variety of employee health initiatives. “Providing access to various wellness programs, from gym memberships and weight management support to mental health counseling and stress management, can go a long way in improving employees’ physical, mental and emotional health,” he explains.

“A proactive approach to employee wellness not only helps individuals better manage chronic conditions and reduce their risk of illness or injury, but also reduces health care costs while increasing productivity, engagement, and reducing absenteeism in the workplace.”

In addition to programs designed to directly impact employees’ health, Harefeld also recommends that employers offer educational resources to help employees better manage costs within their health care plan. For example, knowing when to visit urgent care instead of the emergency room or understanding the value of generic prescription drugs can have a significant impact on employees with high-deductible plans.

Employers can design their programs to improve financial, physical and mental health by taking a comprehensive approach focused on maximizing the benefit to their workforce.

You can help employees manage costs

High medical costs It’s a complex problem that likely won’t be truly solved anytime soon. However, employers can ensure better health and financial outcomes by taking steps to help employees overcome high deductibles, especially when it comes to prescription drugs.