A New Study Suggests that Reducing Drug Co-pays Saves Employers Money

Jan 14, 2011

According to a new study published on Friday, reducing the out-of-pocket costs that consumers pay for drugs can lead to lower health care costs and savings for employers.

A case study at a large Orlando based company found that an employer program to lower cost sharing for diabetic employees paid for itself after three years. The study found that employees with lower out-of-pocket drug costs made fewer visits to the hospital or the emergency room.

After three years employees with reduced co-pays took 6.5% more medication than those with higher co-pays. Affordable drugs allowed these patients to use their medication as their doctor prescribed which meant better management of their condition and fewer visits to the emergency room.

Becky Cherney, president of the Florida Health Care Coalition said, “At the end of the day, for every $1 that employer put into these patients, they got $1.33 back."

-- LA Times