Rx Management 101: How to cut costs like America's biggest companies
We asked Todd Bisping, Global Benefits & Health Manager at Caterpillar Inc., to unpack the basics of one of the most impactful levers you can pull to cut costs: Rx Management.
This year, US companies are expected to spend more on healthcare benefits ($1.4T) than they are projected to make in profit ($1.3T). Against all odds, Todd Bisping, Global Benefits & Health Manager at Caterpillar Inc. (and Nava Advisor), has found the secret sauce to keep the company's healthcare costs flat for an astonishing and commendable 15 years (!)
He'll be the first to tell you how: Rx Management. It's one of the biggest cost-saving unlocks at your disposal. Still, its cost-cutting potential is often overlooked by HR leaders. But why?
The truth of the matter is that the prescription drug space is confusing, complex, and downright maddening. And unfortunately, many employers feel powerless in their relationship with their partner in pharmaceuticals, the mighty PBM (Pharmacy Benefits Manager). But it doesn't have to be that way.
Prescription drugs are astronomically expensive, accounting for $359 billion (with a B) in annual costs in the US alone. And these costs are only expected to continue growing, with an average 5.7% annual increase in retail Rx spend. So to achieve enduring cost savings, every employer, large or small, should have a solid Rx understanding (and strategy) at the ready.