POSTED BY ADMIN ON JUL 6, 2016 IN ACA, EMPLOYER NEWS, HR BENEFIT ADVISORS BLOG,INDUSTRY NEWS, THE BLOG, UBA NEWS | COMMENTS OFF ON EMPLOYERS SPLIT ON WHETHER TO SELF-FUND PRESCRIPTION DRUG PLANS
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On average, 11.9% of prescription plans are self-funded, with the vast majority (88.1%) of employers choosing to fully insure their prescription plans, according to UBA’s new Special Report: Trends in Prescription Drug Benefits, based on data from the latest UBA Health Plan Survey of more than 10,000 employer-sponsored health plans. Although self-funding has increased 9% from the past survey year, the move to self-funding is slow but positive among small groups (10 to 199 employees), while large groups are actually moving away from this model.
“With the possible expiration of grandfathered and grandmothered ACA plans in 2017, many small employers are looking to self-funded and level-funded plans,” says Scott Deru, President of UBA Partner Firm Fringe Benefit Analysts. “Level-funded means funding a self-funded plan at the maximum potential liability so that no additional liability exists at the end of the plan year or upon termination of the plan. Many employers are also joining a pool that employs a self-funded or level-funded strategy. These plans can avoid many of the ACA provisions that employers consider unfavorable. A continued increase in adoption of these plans is anticipated.”
Besides funding options, UBA’s Special Report finds that employers are using other cost containment strategies such as increased tiers, blended copay/coinsurance models and penalties for brand name drugs—as part of their effort to control the soaring costs of specialty pharmacy drugs.
For more information on prescription drug trends, subscribe to the UBA blog, read our breaking news release or download UBA’s free (no form!) publication: Special Report: Trends in Prescription Drug Benefits.
Originally published by United Benefit Advisors – Read More