While employers are paying a light-weight half percent increase in medical costs annually, pharmacy costs are rising to nearly 10 percent a year, according to benefits consultant Aon Hewitt.
The inflation in pharmaceuticals threatens to overwhelm insurance plans, forcing higher co-pays and greater reliance on generic drugs. Insurance companies are increasingly asking doctors to get pre-approval for expensive drugs.
Some drugs cancer drugs cost as much as $13,500 per month. One benefits specialist quoted in the Wall Street Journal said these new drugs account for 28 percent of drug costs, while serving only 1 percent of insured clients.
The drugs cost so much that employers feel they must know if patients are taking the entire amount. Some split-fill programs authorize only two weeks of a drug. A nurse then interviews the patient to make sure he or she has not stopped taking the drug.