In case you missed it, the National Institute for Public Employee Health Care Policy recently released a report, “How Public Sector Health Care Purchasers Are Addressing Rising Drug Costs.” According to the report, “Through pooled purchasing organizations, employers in the public sector partner with pharmacy benefit managers (PBMs) to administer the pharmacy benefit and manage prescription spending… [They] surveyed 19 public sector purchasers representing over 5 million retirees, employees, and their dependents from 15 states about their health care spending, details of their PBM contracts, and perceptions of provided services.”

The findings from the survey underscore the vital role pharmacy benefit companies play in helping employers offer quality, affordable prescription drug coverage. Results include:

• Most respondents are satisfied with their current pharmacy benefit company.
• Health plan sponsors view pharmacy benefit companies and their services as essential in administering the pharmacy benefit and containing prescription drug costs for public sector employees and retirees.
• Public sector purchasers use a competitive bidding process for PBM contracting, with rebate savings cited as the most competitive feature for current contracts.
• One hundred percent of rebate savings are used to reduce premiums and cost-sharing for their employees and retirees.
• All respondents reported using other services offered by their pharmacy benefit companies to help ensure appropriate drug use and reduce prescription costs.

Another recent survey of more than 700 employers across the country with 50+ employees who offer prescription drug benefits to employees found that employers, including small and mid-sized businesses, value having flexibility and a range of options when designing their prescription drug benefits for the unique needs of their employees. Key findings from the Coalition for Affordable Prescription Drugs (CAPD) survey include:

• 89 percent of employers say their PBM is valuable in helping their organization offer affordable benefits to employees.
  • 97 percent of those who contract directly for pharmacy benefit services are satisfied with their PBM.
• 93 percent of employers say it is essential to have flexibility and a range of choices in how they offer prescription drug benefits to employees, with 86 percent of employers saying it is important to have a range of options in how they pay PBMs for their services and expertise.
  • 86 percent also say it is important to have flexibility in how their organization manages the financial risk related to prescription drug spending. Nearly one-third of employers choose to manage that risk and compensate their PBM through “spread” or risk-mitigation/predictable pricing. See the full breakdown of how many businesses and employees would be affected by a spread pricing ban HERE.
• 91 percent of employers say it is important to have flexibility and choice in how their organization uses rebate dollars.
• 90 percent of employers who receive rebates from PBMs use those rebates to the benefit of employees, including lowering employee spending on benefits and enhancing coverage.
• 89 percent of employers who use a PBM describe their contract as transparent, with 43 percent describing their contract as “very transparent.”

Employers are under no obligation to contract with a pharmacy benefit company. Still, the findings from both recent surveys underscore why they do: employers are satisfied with the cost savings, transparency, and rebates secured by PBMs. Any new government mandate in the health care system undermining the vital role pharmacy benefit companies would only hinder employers’ ability to offer pharmacy benefits for employees.

See the full report from the National Institute for Public Employee Health Care Policy HERE

Learn more about the CAPD employer survey HERE.

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Read PCMA’s recent Rx Research Corner Blog highlighting the value employers find in their PBM relationships HERE.

See what employers are saying about proposals targeting pharmacy benefits HERE.

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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