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Practical Ways Employers Can Help Lower Prescription Drug Costs

January 28, 2026

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Prescription drug costs continue to rise, creating pressure on both employer sponsored health plans and employee budgets. The good news is there are proven ways to manage pharmacy spend without sacrificing access to care or outcomes.

Promote the Use of Generic Medications

  • FDA approved generics are clinically equivalent to brand name drugs
  • Generics typically cost significantly less than brand alternatives
  • Ongoing employee education helps address misconceptions and encourages smarter choices

Leverage Built-In Cost Saving Programs

Many health plans offer programs designed to reduce waste and improve affordability, including:

  • Mail order prescriptions for maintenance medications
  • Step therapy programs that encourage lower cost options first
  • Refill incentive and adherence programs
  • Half tablet and preferred pharmacy programs

Manage Specialty Drug Costs Strategically

Specialty medications are a major driver of rising pharmacy spend. Employers can help control costs by:

  • Applying utilization management and quantity limits
  • Using preferred specialty pharmacy networks
  • Working closely with pharmacy benefit managers on emerging trends

Empower Employees With Simple Cost Saving Tips

  • Review formularies for lower cost alternatives
  • Use preferred pharmacies and compare prices
  • Ask providers about generic or therapeutic equivalents

With the right plan design, education, and support, employers can take a proactive and sustainable approach to lowering prescription drug costs while continuing to support employee health.

Continue Reading: Benefits Toolkit – Lowering Drug Costs