Cut the Pharmacy Portion – Keep Health Benefits Affordable

How can employers reduce pharmacy spend and control renewal rates with CompareMedsRx? 

For two decades, employers have been fighting a losing battle against rising healthcare costs. But one part of the benefits package is now growing faster than all the others: pharmacy spending. 

According to CFO Dive, pharmacy’s share of employee health benefits has more than doubled, now accounting for 24 percent of the total plan spend. This means nearly one-quarter of every benefits dollar is disappearing into prescription drug costs alone. And as specialty medications, GLP-1 drugs, and chronic condition therapies continue to rise, so do renewal rates. 

But employers do have a lever they can pull before their next renewal conversation. They can directly influence pharmacy spend, without cutting benefits and without increasing employee out-of-pocket cost. 

Why have pharmacy costs skyrocketed? 

The rapid rise in pharmacy spend is driven by several structural shifts: 

1. More chronic conditions.
   Diabetes, obesity, hypertension, and cardiovascular disease now affect more workers thanever, leading to higher medication utilization. 
2. Specialty drugs dominate plan spend.
   GLP-1scan cost over $10,000 to $15,000 per year per member. Specialty drugs now represent over half of overall pharmacy costs. 
3. Price opacity in the system.
   Most employers do not know what their employees truly pay for medication. PBM contracts with spread pricing, tiering rules, and rebate structures obscure thereal cost. 
4. Employees are not comparison shopping.
   Prescription drug prices can vary up to ten times between pharmacies in the same ZIP code, yet most people fillprescriptions at the same place every time, often without question. 

For employers, this means pharmacy spend becomes a runaway cost center, one that directly affects planning performance and renewal rates. 

The 24% reality: What does this mean for employers? 

When pharmacy spend takes up nearly a quarter of the plan budget: 

• Premium increases accelerate. 

• Claims of experience deteriorate. 

• Renewal negotiations become harder. 

• Stop-loss becomes more expensive. 

• Employees absorb higher deductibles or cost-sharing. 

• Benefits teams are forced into defensive planning rather than strategic planning. 

If employers do nothing, pharmacy inflation continues to compound year after year. 

But reducing pharmacy spend, even modestly, can significantly improve renewal outcomes. 

Introducing Smart Pharmacy Savings – CMRX 

Employers often believe their only options are to cut coverage, limit formularies, or impose higher copays. 

CompareMedsRx offers a third path: Lower the underlying pharmacy cost without reducing access. 

Our platform enables employees to: 

• Instantly compare medication prices via ZIP code 

• Access brand and generic discounts 

• Find the lowest price at over 70,000 pharmacies 

• Choose cost-effective alternatives 

• Use home delivery options for additional savings 

• Search with no login, no insurance, no friction 

The result: employees pay less, and the employer’s plan absorbs fewer high-cost claims. 

How we deliver real-world savings for employer health plans? 

1. Price transparency that finally works.
   Employees see true medication prices upfront, not estimates.
2. Reduced claims leakage.
   When members pick lower-cost pharmacies and generics, employers see fewer high-ticket pharmacy claims.
3. Lowerutilizationof overpriced channels.
   Many retail pharmacy chains have inflated cash prices. CompareMedsRx routes employees to the most cost-effective option. 
4. Zero administrative lift for HR.
   No implementation. No integration. No systemchange.
   Employers simply share a link or QR code. 
5. A free benefit thatoffsetrenewal increases.
   Every dollar saved on pharmacy spend improves the employer’s renewal positioning. 

Employer health plans don’t often get “easy wins.” This one is. 

The Bottom Line 

Pharmacy inflation is not slowing down. Employers cannot negotiate away from this trend, but they can reduce its impact. 

With pharmacy spending now consuming 24 percent of health plan dollars, employers need smarter tools to keep benefits affordable and renewals manageable. 

CompareMedsRx gives employers the power to lower pharmacy spend immediately, improve claims experience, and strengthen their position before renewal negotiations begin. 

It’s free. It’s easy. And it drives measurable savings. Start reducing your pharmacy spend today at CompareMedsRx.com. 

 

Frequently Asked Questions

Why are prescription drug prices rising faster than other healthcare costs? 

Prescription costs are increasing due to higher utilization, specialty medications like GLP-1 drugs, and pricing differences between pharmacies. This makes prescription savings tools essential for both employers and employees who want to control rising healthcare expenses. 

Does CompareMedsRx help employers improve their claims experience before renewal? 

Yes. When employees use CompareMedsRx to find lower-priced medications, employers see fewer high-cost pharmacy claims flowing through the health plan. 

Can I use CompareMedsRx if I already have insurance? 

Yes. CompareMedsRx works with or without insurance. Users with high-deductible plans can find lower cash prices before meeting their deductible, making it easier to access affordable medications throughout the year. 

Can I use CompareMedsRx for my family and pets? 

Yes, CMRX is free for everyone, and can be used for your prescriptions, your kids, your parents, and even your pet medications.