Generic Drug Makers Sued over Pricing Practices

| posted in Blog, Newsletter

One of the country’s largest health insurers has sued a number of pharmaceutical companies, accusing them of running a price-fixing cartel of common generic drugs. Humana Inc. has accused the companies of colluding on the prices of generics to the detriment of health insurers that have to pay for these drugs. Humana said in its lawsuit that this collusion prevented fair competition among insurers that could have reduced the cost of many of these drugs. The Background The lawsuit comes after 45 states signed onto a suit last year over an alleged scheme among generic drug manufacturers to fix the…
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Help Your Employees Save Money on Pharmaceuticals

| posted in Blog, Newsletter

Most employers are doing all they can to keep their employees’ health insurance and health care outlays to a minimum. And while most of those efforts are focused on the upfront cost of insurance, copays and deductibles, some employers are taking it a step further to help their employees control the very costs they actually have the most control over – and one of those areas is medicine. Helping your workers become wise consumers of health services can also cut your overall insurance costs, as well as help your employees conserve more of their own funds if they have high…
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Employers Seek New Ways to Reduce Health Insurance Inflation

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As employers anticipate that their employee health insurance costs will rise 5.5% for the 2018 policy year, they are also planning to step up their cost management efforts in new areas, according to a new study. And despite the maelstrom in Washington over how to deal with the Affordable Care Act, 92% of employers surveyed said they are “very confident” their organization will continue to sponsor health benefits in five years, according to the “Willis Towers Watson 2017 Health Care Employer Survey.” Employers will try to contain costs by exploring new strategies like emerging health care delivery systems, and arrangements…
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Drug Inflation May Push Many Plans into Cadillac Tax Territory

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As health care inflation starts to climb again, more health plans are likely to breach the Cadillac tax threshold. A new report by the consulting firm Milliman predicts that a typical family of four covered by an employer-sponsored preferred provider organization (PPO) health plan will incur health care costs in excess of $25,000 by 2016, which is just a few thousand dollars shy of the Cadillac tax threshold of $27,500 for a family of that size. While 2014 marked one of the lowest rates of health care cost inflation on record at 5.4%, Milliman notes that costs have increased 6.3%…
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