The use of mail order drug services is the most frequently used cost containment technique for prescription drug benefits, according to a survey by the International Foundation of Employee Benefit Plans (IFEBP). Eighty-seven percent of those surveyed used mail-order drug services. Other commonly used cost-saving techniques include drug formularies (used by 79% of those surveyed), mandating or promoting generic drug use (79%), and the use of a system of three or more tiers for cost-sharing devices such as deductibles, coinsurance and copayments (76%).

Fifty-eight percent of those surveyed use a pharmacy benefit manager (PBM) to administer their prescription drug plans. Of those who offer a PBM:

• 69% require PBMs to pass through all manufacturer rebates, discounts, fees and other payments;
• 63% include financial and performance guarantees in their PBM contracts; and
• 63% require an unrestricted right to audit PBMs.

Of those who used a PBM or other vendor:

• 89% are satisfied or very satisfied with their current service provider;
• 12% are in the process of choosing a new provider; and
• 14% plan to change vendors within the next 12 months.

Source: CCH Employee Benefits Management Directions; www.ifebp.org.