Kansas City, Kan. -- In past months, large retailers have made news with plans to reduce the cost of some generic prescriptions. Now months later, the newly-released Compensation Data 2007 – Ohio results have revealed prescription co-pay costs have increased since 2005 for all drug levels on flat dollar plans. However, the survey of 339 organizations reported generic co-pays have seen smaller increases in 2007.
Non-formulary drugs have experienced a consistent rise in cost over the last three years. Indemnity plans had the highest co-pay with $45.14 and were followed closely by PPO plans with $44.84, a difference of $0.30. Since 2005, non-formulary co-pays for PPO plans have increased by 21.5 percent. A similar increase was seen in POS plans, 23.6 percent.
While co-pays for non-formulary drugs have increased in Ohio, formulary drugs have also seen a consistent rise in cost across most flat dollar health plans. In 2005, the average cost of formulary drugs on PPO plans was $22.94. This number has increased by 12 percent over the last three years. Although PPO plans had the highest formulary cost this year, $25.68, they were followed closely by Indemnity with $24.91.
In comparison, co-pays for generic drugs have stayed between $10 and $11.00 for the last three years. According to the newly released results, PPO plans have an average co-pay of $10.62 for generic drugs, and POS plans are at $11.00. HMO had the lowest cost with $10.10. Since 2005, generic co-pays have seen less than a 1 percent increase on PPO plans.
"Despite reductions in health care coverage, the results have shown employers are still offering prescription plans as part of their health insurance," said Amy Kaminski, manager of marketing programs for Compdata Surveys, the nation’s leading compensation and benefits survey data provider. "In 2007, 99.3 percent of organizations reported offering prescription coverage with their PPO plans. And, nearly all companies offering Indemnity, HMO and POS plans provide prescription drug coverage."
About the Survey
Compensation Data 2007 –Ohio contains data on 501 job titles ranging from entry-level to top executives. Information was collected on more than 287,000 employees across the state. The results provide a comprehensive summary of pay data, benefits information and pay practices with an effective date of March 1, 2007.
Compdata Surveys is the nation’s leading compensation and benefits survey data provider. Data is collected annually from thousands of organizations across the country. Compdata Surveys has been providing accurate, reliable data at affordable prices to organizations from coast to coast since 1988. For further information about the compensation and benefits surveys, contact Lane Lyons at (800) 300-9570 or llyons[at]compdatasurveys.com.
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