Every year, the United States wastes over $528 billion due to mismanagement of medications. More concerning, over 275,000 lives are lost annually due to medication misuse.
With over 80% of Americans taking at least one prescription medication weekly, it may be surprising how much employers are losing financially without realizing it. Yet, employers are uniquely positioned to drive better outcomes and cost savings by rethinking how medications are managed across their workforce.
Employers can play an important role in combating this issue and save money through smarter medication strategies, particularly with a pharmacist-led approach.
Why employers should care: Impacts on cost, productivity and outcomes
Employers should be aware of ‘gaps in care’. They cost employers’ health plans money. People with chronic conditions commonly experience gaps in care. These are defined as when a patient fails to achieve their treatment goals. For example, when an employee with diabetes misses an annual retinal exam, or an employee with asthma fails to use a steroid inhaler, these are ‘gaps in care’ that impact whether a person achieves their optimal health outcome.
One common problem among people with chronic conditions is medication non-optimization. Despite medications being the primary treatment for chronic conditions, non-optimized medication use is costing employers 16% or more in avoidable health care expense every year. Non-optimized medications are defined as those not taken correctly, inappropriate prescriptions (including incorrect dosage common among expensive GLP-1s) and medications that cause a secondary health issue (i.e. a side effect that causes a stomachache, so another medication is prescribed to manage the stomachache).
For the employer, in addition to the increase in health care expenses, there is a decline in employee productivity and potential absences, all of which impact on the bottom line. In fact, a study on the impact of medication adherence (taking medication incorrectly) on absenteeism for chronic diseases found that adherent employees experienced one to seven fewer days absent from work compared to non-adherent employees.
The case for comprehensive medication management (CMM)
Comprehensive Medication Management (CMM) is defined as a proactive, pharmacist-led approach to ensuring medications are safe, effective and aligned to the individual. Since medications are the primary treatment method for chronic diseases and pharmacists are specialists in medication, they are the best resource to provide support.
Pharmacists are equipped to review all current medications and identify potential drug interactions and savings opportunities. The pharmacist also works directly with a patient’s health care team to ensure that the intended medical outcomes are achieved.
Plus, a pharmacist can identify the underlying reason for non-optimization – and it’s not always forgetfulness. There are various factors to explain non-optimization, from a lack of literacy in understanding the benefits of a medication, access and cost issues, to fear or concerns. Pharmacists play a critical role in identifying solutions to these barriers, whether it’s helping a patient get a pill box, educating them on why they need to take a prescription, or exploring their health plan to determine a cost-effective solution.
Essentially, a CMM can prevent medication errors, adverse drug events and hospitalizations.
Real-world model and results
Pharmacist-led benefits are committed to tackling this issue. They enable employers to employee health by integrating pharmaceutical care and precision medicine into benefits strategies.
Here’s some data that our team has found that demonstrates CMM as a solution to this complex issue of medication mismanagement.
- Employers have saved $2,579 per patient through reduced pharmacy and medical costs.
- Diabetes patients saw an average reduction of blood sugar of 1.9 points, which is a statistically and clinically significant improvement.
- 88% of participants in weight management coaching programs lost weight. Of the participants in the weight management program on metabolic medications, an additional 48% of participants were able to discontinue two medications.
- Pharmacogenomic testing has identified adverse genetic drug responses before they happen. This is particularly relevant as 50% of medications are ineffective or minimally effective for patients due to genetic differences.
- Patients using GLP-1s experience an average of 1.3 drug therapy problems per person, with 70% of those issues related to improper dosing.
What employers can do
Here are a few considerations to integrate a pharmacist-led care and precision medicine into a benefit strategy:
- Assessing your current medication management gaps.
- If you are not already educating your employees on medication safety and options for support, you should include this within your holistic benefits strategy.
- Look beyond cost containment and align with value-based care and better outcomes.
This is particularly important as employers seek sophisticated, data-driven solutions in response to rising health care costs and ongoing workforce wellness concerns, especially since health care costs for employers are expected to continue to rise by 9% to 10% in the next year,
A smarter, safer path forward
Medications are essential to billions of lives daily, but they can be dangerous when mismanaged. Employers have the power and responsibility to protect lives and budgets by getting medications right.
Adding a personalized, pharmaceutical-led health care approach to your employee’s benefits package can lead to incredible results, including optimal health outcomes and cost savings per engaged member per year.
Dr. Jessica Lea, PharmD is founder and CEO of Tria Health, a comprehensive health benefit offered through self-insured employers for individuals with chronic conditions. Dr. Lea has a background in mental health. She also is passionate about pharmacists providing patient-centered care to improve the health outcomes of patients. This was her catalyst for starting Tria Health.
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