Reference-based pricing helps employers rein in drug costs

An update on a study from 2017 suggests that employers and employees can both benefit from the strategy.

A new study published in the Journal of the American Medical Association shows that reference-based pricing can help lower the annual cost of drugs for both employers and employees.

Reference pricing finds the most expensive drugs used by employees, points out more cost-effective alternatives and encourages health plan members to switch to the most affordable drug.

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Marlene Satter

Marlene Y. Satter has worked in and written about the financial industry for decades.

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Resource Center

Self-funded healthcare is a health plan strategy that offers a number of advantages to employers over fully insured health plans, including new opportunities for cost containment, increased transparency, greater flexibility and more control over health plan design--all of which are reviewed in this guide.

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