How employers can reduce prescription drug spending

The National Alliance recommends that employers restrict the use of rebates and instead demand transparent pricing. Additionally, the majority of employers surveyed believe direct-to-consumer advertising encourages employees to want more expensive brands. In 2016, the pharmaceutical industry spent $29.9 billion in marketing and advertising, according to analysis by the Journal of the American Medical Association.

According to the CDC, 75% of healthcare spending is due to chronic diseases that could be avoided by preventative care services. Currently, three-quarters of employers offer a wellness benefit program, which can lower healthcare costs by $3.27 per employee, according to a Harvard University study. The National Alliance says these programs can also better monitor pharmacy and medical claims, while potentially reducing medication waste.