“Some Employers Are Offering Free Drugs”

1. “Some Employers Are Offering Free Drugs” By: Milt Freudenheim New York Times, Feb. 21st , 2007 Presented by: Arjun Sondhi

2. Employer based Health Insurance • The U.S. employer-based health insurance market provides insurance coverage to nearly two-thirds (159 million Americans) of the population under 65. • In addition, nearly 80 percent of the uninsured live in a family where at least one adult is employed (USDHHS). • Due to the rising Health care costs, employers have been raising premiums and out of pocket expenses and forcing workers to seek only the most necessary care. • Over the last decade, employer-sponsored health insurance premiums have increased 131 percent. • The cumulative increase in employer-sponsored health insurance premiums rose at four times the rate of inflation and wage increases during last decade. • Health insurance costs are the fastest growing expense for employers. Health Insurance Costs: National Coalition on HC (nchc.org)

3. Average Health Insurance Premiums and Worker Contributions for Family Coverage, 1999-2009 $13,375 131% Premium Increase $5,791 128% Worker Contribution Increase Note: The average worker contribution and the average employer contribution may not add to the average total premium due to rounding. Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 1999-2009.

5. Long Term Costs • In order to reduce long term medical costs, some employers have adopted a policy of giving drugs to help workers manage chronic conditions like diabetes, high blood pressure, asthma and depression. • Multiple long-term complications of diabetes can be prevented through improved patient education and self-management and provision of adequate and timely screening services and medical care (CDC: chronic disease indicators). • Roughly 8% of population over the age of 18 has diabetes and one in three Americans have some form of cardiovascular condition. • Keeping workers healthier when they are younger through regular checkups and screening potentially reduces the long term costs born by the employer. • Another reason to reduce long term costs from the employers’ perspective is to stave off a greater government involvement in health insurance. • The most important goal of such a program however, is to help workers stay away from emergency room care.

6. Marriott International, Pitney Bowes, Mohawk Industries, Maine’s state government have all introduced free drug programs. • Some of these measures include free drug programs, opening health clinics in or near the workplace and offering checkups and medicines for a modest co-payment. • These companies have waived co-payments of $10-$20 on a typical prescriptions. • At the Mohawk Industries factory in Dublin, GA, 200 out of 750 employees signed up for free blood pressure and heart drugs (lower cholesterol). • Some of these sites have independent pharmacist present at the plant to monitor certain conditions. • Eastman Chemical offers free mammograms for its workers, free vaccines for employees’ children and are providing supplies for diabetes under its health plan. Some Employers Are Offering Free Drugs

7. State of Maine spends over $20 million a year to treat 2000 diabetes patients. • More than half of these patients had additional health problems like heart disease. • As part of a program with BCBS, the state offers free drugs to employees with diabetes who agree to interview with nurse educators. • Many companies have started weighing the initial costs and potential long term savings of free co-pay programs and other health-plan incentives.

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