Skip to main content

High prescription drug costs cause a negative health impact

High prescription drug costs cause a negative health impactA 2021 CDC study found that 8.2% of Americans aged 18 to 64 skipped, delayed or reduced the amount of their prescription medications because of cost concerns. The National Health Interview Survey revealed that to reduce expenses, 9.2 million adults were not taking medication as prescribed.

According to the report, about 60% of adults age 18 and older took at least one prescription medication, with 36% taking three or more. Out-of-pocket costs on retail drugs rose 4.8% to $63 billion. Since high costs limit many Americans’ ability to take their medications as prescribed, these patients may require additional treatment.

6 prescription drug cost key takeaways

While this study was conducted in 2021, key takeaways are still applicable today due to rising prescription drug costs. Consider the following findings:

  • Women (9.1%) were likelier than men (7%) not to take medication as prescribed.
  • The percentage of adults not taking medication as prescribed due to cost varied by race and origin: non-Hispanic other or multiple race adults (11.5%), Black adults (10.4%), Hispanic (9.7%), White adults (7.4%) and Asian adults (6.8%).
  • Adults with disabilities (20%) were more likely than adults without disabilities (7.1%) to skip, delay or reduce medications as prescribed due to cost.
  • Uninsured adults (2.9%) were more likely than adults with Medicaid (8%), private health insurance (6.5%) or other health coverage (11.4%), to not take medications as prescribed due to cost.
  • Adults without prescription drug coverage (18.1%) were more likely not to take medication as prescribed to reduce costs compared with adults with public (7.6%) or private (6.6%) prescription drug coverage.

How employers can help

Many Americans are skipping or cutting back on prescribed medications for financial reasons. This behavior is expected to continue as economic pressures strain Americans’ finances. Unfortunately, it can result in serious negative health outcomes.

Drug prices vary, so it can pay to encourage employees to shop around. Other common strategies for reducing prescription drug costs include choosing generic drug or biosimilars versions, comparing prices and using a preferred pharmacy.

Employers can also help by monitoring prescription drug pricing trends, utilization and spending. It’s a huge advantage to offer employees benefits options that help them better manage their health. If you need assistance finding the best solution for your organization, contact HANYS Benefits Services today. Our dedicated team of experts is more than happy to help you find better strategies to save.

The content of this News Brief is of general interest and is not intended to apply to specific circumstances. It should not be regarded as legal advice and not be relied upon as such. In relation to any particular problem which they may have, readers are advised to seek specific advice. © 2023 Zywave, Inc. All rights reserved.

Popular posts from this blog

Employee Benefits Offerings: What Perks Can You Add?

Employee benefits can play a crucial role in attracting and retaining top talent. Beyond compensation and bonuses, offering a variety of perks can significantly enhance employee satisfaction and productivity. But what should you include in your employee benefits offerings?   What are employee benefits?   Employee benefits encompass compensation, bonuses and various perks outside an employee's wage. By offering flexible employee benefits, you can improve employee productivity and loyalty while attracting and retaining talented candidates.   Personalized benefits examples   The type of benefits offered can vary by industry. We've compiled some of the most popular options to help you explore possible employee benefits strategies .  1. Social opportunities   Employee perks don't always have to be tied to a benefits package. Sometimes, the best way to engage your employees can be through social opportunities. Group activities can help im...
Read more

What is Risk Management? 4 Key Topics to Know

Understanding risk management in retirement programs  Managing a retirement program is complex, with multiple layers of risk. For organizations and their leadership, understanding and mitigating these risks is crucial to ensuring the long-term success and reliability of these programs.   It often leaves human resource professionals, employers and program administrators questioning, "What is risk management, and how can we excel at it?"  This blog post explores the various aspects of risk management in retirement program administration and provides actionable insights to help organizations better manage these risks.  The importance of risk management  Retirement programs are designed to benefit participants and beneficiaries, but they come with their own set of risks. These risks can be broadly categorized into four main topics:  Fees  Administration  Investments  Cybersecurity  Each of these topics requires meticulous attention and ...
Read more

What is HR vendor management? Overview with scenarios

Vendor management can be a litigious environment where efficiency, transparency and risk mitigation are paramount. With the right advisor in your organization’s corner, you’ll feel more confident navigating vendors and managing their services, ensuring streamlined processes and strategic alignment.   In this blog post, we'll cover the basics: What vendor management in HR entails, why it's important, how it can transform businesses and some scenarios in a few business types. Level up your knowledge and find the right partners to thrive.  Understanding vendor management in HR  Vendor management in HR involves the systematic management of third-party suppliers who provide goods and services essential to HR operations. This includes managing contracts, ensuring compliance with service level agreements and optimizing vendor performance to align with a company's long-term business goals.  A robust vendor management strategy can provide organizations with a structured ...
Read more