Approximately 9 in 10 Employers Find Pharmacy Benefit Companies Valuable When Designing their Pharmacy Benefits and Say Flexibility and Choice are Essential

In case you missed it, the Coalition for Affordable Prescription Drugs (CAPD), an organization that represents a diverse group of public and private stakeholders, released a new survey last week that found an overwhelming majority of employers value their pharmacy benefit company. The survey included more than 700 employers across the country with 50+ employees who offer prescription drug benefits to employees.

Specifically, 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.

The polling comes at a time when Congress is considering various policies and mandates that undermine the flexibility, choices, and cost saving tools that employers value when designing prescription drug benefits for their employees.

Key findings from the 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.
  • The same number (86 percent) 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 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.”

The message from employers is clear: Satisfaction with cost savings, transparency, and rebates emphasize that the market is working, and government mandates would only hinder employers’ ability to offer pharmacy benefits for employees.

There are significant risks in pursuing misguided legislation targeting pharmacy benefit companies that would lead to higher costs for businesses, employees, and their families.

See the full findings of the CAPD survey HERE.

________________________________

See a recent op-ed from U.S. Senator Rand Paul (R-KY) discussing legislation advanced by the Senate HELP Committee HERE.

See a recent PCMA blog highlighting how former Members of Congress are warning Congress against advancing legislation targeting pharmacy benefit companies HERE.

See what more lawmakers have had to say about pharmacy benefits securing savings for employers and patients, and the root cause of high prescription drug prices – Big Pharma’s anti-competitive tactics – 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