Insurance Corner: Prescription Drug Strategy

As prescription drug costs continue to increase, it is important for employers to understand the trends behind prescription drug costs and what they can do to better manage their health care expenses.

In 2019, the United States was projected to spend over $500 billion on prescription drugs, by some estimates—12 times more than the $40.3 billion spent in 1990. Although prescription drug spending has historically been a small proportion of national health care spending compared to hospital and physician services, it has grown rapidly in recent years.

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Jeff Gullickson

Why are Health Insurance Costs Rising?

Health care costs in the United States have risen sharply over the past two decades. In fact, a study by the Journal of the American Medical Association found that U.S. health care spending increased by nearly $1 trillion from 1996 to 2015.

As the average premiums for single coverage and for family coverage continue to rise, employers shoulder the majority of those costs. So what does that mean for you?

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Jeff Gullickson

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