HR perspectives on rising drug costs and Rx benefits

Today's employers face a common challenge in providing employees with competitive benefits packages. They struggle to offer a quality plan while managing costs. The significant annual increases in prescription drug costs, which are unlikely to reverse in the near future, have emerged as the main factor contributing to their struggle. Recognizing that employers are a driving force behind prescription benefits trends, prescription benefit management consultancy Arxcel created a Research Survey Series to identify trends in prescription benefit management and ascertain how related issues, such as the aging of the US workforce, direct-to-consumer advertising by the pharmaceutical industry, and recent Medicare legislation relating to prescription drugs, affect the industry. This article reviews the findings of the third annual study of industry leaders' perceptions regarding the rising cost of pharmaceutical benefits and possible solutions. The impacts on employers of the aging US workforce and the recently passed Medicare prescription legislation are also addressed.