Bank of America (BofA) recently released the findings of an employer survey that found that the pharmacy benefit marketplace is highly competitive, confirmed that surveyed employers believe their pharmacy benefit company is transparent to them, and underscored the savings, flexibility, and choice provided to employers by pharmacy benefit companies.
BofA “surveyed 50 directors/managers in charge of employer-sponsored health insurance coverage with at least 1,000 lives under coverage and at least $1MM in drug spending.”
Key findings from the survey include:
Transparency: More than three-in-four employers say their relationship with their pharmacy benefit company is transparent. Pharmacy benefit companies work with employers to determine transparency requirements that are memorialized in their contracts, and the survey showcases that a majority of survey respondents feel the relationship is transparent.
Competition: The BoA findings also highlight how the pharmacy benefit company marketplace is highly competitive. More than one-third of survey respondents reported changing their pharmacy benefit company in the last five years.
There are 73 full-service pharmacy benefit companies, providing employers with a wide range of choices so they can select the one that best fit their pharmacy benefit needs.
Savings: Pharmacy benefit companies provide a critical role in reducing prescription drug costs for employers. Employers surveyed saw a 2.7 percent weighted average increase in drug spending in 2022, far below the 8.3 percent general inflation rate, and below the 4.7 percent from last year’s survey.
In fact, research shows that pharmacy benefit companies save patients and payers an average of $1,040 per patient per year.
The BofA survey is part of a powerful body of evidence that pharmacy benefit companies are lowering prescription drug costs and, importantly, that employers have broad choice when voluntarily selecting a PBM and have flexibility to work with the pharmacy benefit company to determine what PBM model works best for their unique health care coverage needs.
________________________________
Rep. Kevin Hern on the critical value of pharmacy benefit companies for employers: “As a McDonald’s franchisee with over a thousand associates for 24 years, we contracted with a large PBM through our national insurance company and saved a significant amount of money on prescriptions…I’ve yet to come across an employer that’s expressed concerns to me about the PBMs.” – Rep. Kevin Hern (R-OK), Ways and Means Committee, May 17, 2023
Learn more about why employers hire pharmacy benefit companies to manage growing prescription drug costs HERE.
Pharmacy benefit companies offer choice and flexibility that allows employers to choose a benefit design that provides affordable, quality prescription drug coverage to their employees. Read more HERE.
See PCMA’s guide to understanding the role and value of pharmacy benefit companies HERE.
###
PCMA is the national association representing America’s pharmacy benefit companies. Pharmacy benefit companies are working every day to secure savings, enable better health outcomes, and support access to quality prescription drug coverage for more than 275 million patients. Learn more at www.pcmanet.org
