prescription drug costs Archives

Effective Ways To Reduce Group Costs

One of the best ways to attract better employees is by offering group health insurance. Unfortunately, providing high quality health insurance usually means that your business is going to pay a lot for premiums. With premium prices soaring, many small businesses are struggling to continue offering group health insurance to their employees. In fact, according to the US Chamber of Commerce, of the more than 45 million Americans who are uninsured, 60% are employed by small businesses. If you want satisfied, productive, and healthy employees, but are struggling to provide the health insurance options they’re looking for, here are some tips to reduce your group costs.

Get More Employees to Participate in Your Plan

In order to get a good price on group health insurance, make sure that as many of your employees are participating in your plan as possible. If you’re in the financial position to do so, you can even consider hiring more employees – the more employees that you cover, the lower your premiums will be. How will your premiums be lower? Well, insurance companies face large risks for every employee that they have to cover, so having a smaller pool of employees paying into the plan means that they are taking on more risk. However if you have a larger amount of employees paying into the plan, then there will be less risk for the insurance company, and they will be able to offer you a better deal.

Reduce Coverage: Exclude Dental & Vision

Reducing the amount of coverage that you offer is a simple way to keep your insurance costs low. You can do so by cutting dental and vision from your plan and having your employees decide whether they would like to purchase their own dental and vision coverage. These costs will come out of your employees pockets, but eliminating these plans will help to lower your premium costs and save you money.

Consider Switching Plans

The most common way to control the costs of your group insurance plan is by switching plans. Consider switching to a high-deductible health plan (HDHP). Doing so will increase your employees’ deductibles, but it will also reduce the cost of their premiums, and your premium contributions. Another route you can take is switching to a more cost effective plan with a smaller network, such as an HMO.

money on a table near some prescription medications — *There are different ways you can save on prescription medication costs.*

Take Control of Prescription Drug Costs

Medications are necessary, but they can be expensive. There are ways, though, to save on prescription drug costs in your plan by:

Having a plan that mandates a generic substitution for any medication that has one.
Having a limit on coverage, which will allow you to save on dispensing fees.
Encouraging your employees to shop at less expensive pharmacies, use money-saving apps, or request 90-day supplies of their medications.
Checking your plan’s drug formulary, and making sure that it includes a large range of drugs in the lowest tier. These generic, lower cost drugs will most likely be covered 100%.

Keep Your Employees Healthy

The healthier your employees are, the lower your insurance costs will be. Offer a wellness program, which could include perks like fitness membership stipends, free flu shots, help quitting smoking, and cancer screenings. This is a cheap and easy way to not only make your own employees happier and more productive, but also a great way to save money in the long run.

Provide An HSA

If you decide to switch to a high-deductible health plan (HDHP), consider offering a health savings account (HSA) alongside it. HSAs are only available with a qualified high-deductible health plan, and will allow your employees to contribute tax-exempt dollars to a fund that can only be used for medical expenses. These funds also accrue tax-free interest and roll over each year, so employees will have money for healthcare when they really need it. The benefits for you? Tax breaks for you if you choose to contribute to your employees’ HSAs, and a healthcare plan that is more attractive to your employees.

Find A Good Agent

Health insurance is complex. But if you have a good insurance agent, they can help you shop around for plans from different providers and help you to reduce your health insurance costs. Many insurance agents charge a fee for their services, but not EZ. We will provide you with one dedicated agent who will navigate through all available plans and provide you with instant, accurate quotes. All of our services are free – our mission is to help you find an affordable plan that provides great coverage. To compare group insurance quotes in minutes, simply enter your zip code in the bar above, or to speak to one of our agents, call 888-998-2027.

High Prescription Drug Costs Leave Many To Shop Abroad

Prescription drug prices have been soaring over the past decade, leaving millions of Americans unable to afford the medications that they need. If you have a great health insurance plan, then you have access to prescription drugs at a fair price; however, for many Americans, necessary medications are financially out of reach. Now, more than ever, as our country is being hit by a pandemic and a related financial crisis, Americans are looking for cheaper prescription drugs. All of this is forcing millions of Americans to shop abroad for their prescription drugs.

The Continuous Rise in Prices

Prescription drug prices continue to rise every year. A study published in JAMA, from 2012-2017 shows that insurer and out-of-pocket costs of 36 top-selling brand-name prescription drugs increased by more than 50%, and the cost of 16 of them more than doubled. Insulins such as Novolog, Lantus, and Humalog, and tumor necrosis factor inhibitors (Humira and Enbrel) were some of these high price increases. The reason these drug prices have been on the increase over the past year is because they are biologics, meaning they are made of large, more complex compounds which makes it hard to make generic brands of them. Not to mention, these are highly used medications within the U.S.

Overall, the median cost of the drugs included in the study increased 76%. This year, medication costs are going up an average of 5.2%, which will make many drugs unaffordable for the majority of Americans, especially those who have lost their jobs.

Hard Times

The coronavirus pandemic has left millions of people without jobs – and without health insurance. Those who are in need of prescriptions for chronic conditions or serious medical issues still need their medications, and so many are getting their prescription drugs from other countries, where they can be half the price of what they cost in the US. It is illegal for Americans to import prescription drugs into the US for personal use, but for many, it is a matter of life and death.

“With the economic and health consequences of COVID-19 disproportionately impacting minority and low-income populations, more people in those groups may be seeking an alternative way to meet their medication needs,” said Young-Rock Hong, an assistant professor of health services research, management and policy at the UF College of Public Health and Health Professions.

Safety Concerns

illustration of persons hand with a coin and risk assessment next to it with the arrow pointing at orange — *Buying medication from other countries can pose safety risks to those taking them.*

Buying medication from other countries can pose safety risks to those taking them. Roughly 1 in 10 medications sold in the world are substandard or fake, according to the World Health Organization, and taking these drugs can lead to medical issues or even death.

“Patients need to be knowledgeable of these potential dangers they will encounter, and insurance policies that search to pursue drug importation ought to reinforce high quality assurance and strict monitoring processes to advertise protected administration of imported remedy within the U.S. market,” Hong mentioned.

It is best to purchase medication from a trusted source to reduce the risk of any possible consequences of taking a fake drug, or a drug with a lower dose than labeled. If that is not possible, especially for the millions of Americans who have lost their job and health insurance, there are other solutions to get an affordable health insurance plan. EZ can help find a great affordable plan within budget so that medication does not have to be sought out from abroad. An EZ agent will compare plans and find the right plan for anyone’s needs. Our service comes at no cost, because we simply want to help people find a great insurance plan, and get the medications that they need. To find an affordable plan and medications, enter your zip code and a bar above or to speak to one of our agents call 888-350-1890.