The impact of pharmacy benefits on employee retention and health outcomes

A new study reveals how employees view their pharmacy benefits. Here are some of the key findings, along with how CVS Caremark is addressing emerging needs and trends.

Strong pharmacy benefits can influence employee recruitment and retention

Salaries, paid time off and growth potential are not the only things that job candidates consider when making employment decisions. Pharmacy benefits are perceived to be a valuable indirect financial benefit that many candidates evaluate before accepting a job offer – and continue to review annually once they’re employed. Finding impactful ways to communicate the breadth and depth of member benefits leads to lower costs, better health outcomes and higher employee retention.

Read the full Forrester study to understand how pharmacy benefit designs are key to having – and keeping – top talent.

Employees expect their pharmacy benefits to evolve with their health care needs

While 66 percent of members are satisfied with their pharmacy benefit manager (PBM), there’s an opportunity to improve by focusing on rapidly evolving health conditions and members’ biggest health challenges:

• Rising out-of-pocket costs
• Coverage for evolving areas of medication and treatment like weight loss, fertility and diabetes

Of the benefit managers surveyed, only 28 percent said they selected coverage for these conditions, making treatment and better health outcomes unobtainable for the average member. See why research says PBMs and benefit managers can work together to address these challenges.

See how CVS Caremark is helping payors deploy weight management solutions that control costs while promoting better health outcomes.

Comprehensive pharmacy benefits are a must-have

The vast majority of surveyed members agreed that pharmacy benefits are a critical part of a comprehensive benefits package. Pharmacy benefits are perceived as:

• Helping 72 percent of members feel healthier
• Making 80 percent of members feel like their medications are more affordable

Read more about the role of PBMs in improving access and lowering costs.

Employees prefer the ease and simplicity of one pharmacy benefits provider for all their prescriptions

Employees are looking for streamlined experiences. Having one PBM creates a more user-friendly, seamless experience for members: one number to call when they have questions, one website to get the information they need and one pharmacy benefit manager to manage it all. 

PBMs provide the greatest value when they meet members where they are through activities that create the most impact: enabling them to fill prescriptions using their preferred method, coordinating care with providers and pharmacies, and controlling costs.

Explore how carve-out models often lead to poor member outcomes and experiences.

Key findings

Pharmacy benefits are a critical part of the benefit package, along with clear and simple communications. Informed members make choices that work best for them, resulting in more satisfied members who understand their pharmacy benefits and how to use them.

Members whose conditions are supported through their pharmacy benefit design are more likely to take advantage of the medication and treatments available to them – leading to better health outcomes, lower costs and higher employee retention.

Benefit managers should partner with their PBMs to make sure they’re offering pharmacy benefits that address their employees’ needs and are leveraging their PBM’s scale to adapt to an evolving health care landscape.