The 2009 Compensation Data Insurance survey results found at least 96 percent of insurance companies offer prescription drug coverage as part of their PPO, Indemnity, HMO or POS medical plan offerings.
Kansas City, Kan. - Americans are facing increasing economic pressure, and as a result, many have cut back or quit taking their prescriptions. Employed workers with access to health insurance can experience some economic relief through employer paid prescription coverage. In fact, the 2009 Compensation Data Insurance survey results found at least 96 percent of insurance companies offer prescription drug coverage as part of their PPO, Indemnity, HMO or POS medical plan offerings.
“When individuals are not adhering to their prescribed medications, they run the risk of incurring increased medical costs in the future. Large claims drive up the cost of health insurance impacting future costs for employers,” said Amy Kaminski, manager of marketing programs for Compdata Surveys, the nation’s leading compensation and benefits survey data provider. “For many, this practice can be cost-saving in the short term, but detrimental to their health and wallet in the future.”
When comparing prescription costs, non-formulary co-pays have increased over the last three years on Indemnity, HMO and PPO plans. The 2009 Compensation Data Insurance results found HDHP plans had the highest co-pay, $49.00. In contrast, non-formulary co-pays on PPO plans were $47.00. Over the last three years, the cost on PPO plans has increased by 10.4 percent.
While co-pays for non-formulary drugs have risen nationally, formulary drugs have seen an increase in cost on all plan types. In 2007, the average cost of formulary drugs on PPO plans was $25.44. This number has increased by 6.1 percent over the last three years. HDHP and Indemnity plans had the highest formulary cost this year, $29.00, and HMO had the lowest, $26.00.
In comparison, co-pays for generic drugs have stayed under $15.00 on all plans in 2009. According to the newly released results, generic co-pays were $10.00 on PPO and HMO plans. On average, an individual could save over $35.00 per prescription when choosing a generic over a non-formulary drug.
About the Survey
Compensation Data Insurance 2009 contains data on over 100 industry-specific job titles and more than 250 benchmark titles ranging from entry-level to top executives. Data is collected annually from employers across the country. The results provide a comprehensive summary of pay data, benefit information and pay practices with an effective date of January 1, 2009.
Compdata Surveys is the nation’s leading compensation and benefits survey data provider. Thousands of U.S. organizations provide data each year ensuring the reliability of our results. Compdata Surveys has been providing comprehensive data at affordable prices to organizations from coast to coast since 1988. For further information about the compensation and benefits surveys, contact Amy Kaminski at (800) 300-9570.
- Amy Kaminski
- Compdata Surveys
- (800) 300-9570