What employers can do about pharmaceutical costs
1A. Foster Higgins, Stamford, CT.
Journal of Health Care Benefits
|August 6, 1994
Summary
Employers are implementing drug cost control strategies. To mitigate risks, companies must address potential negligence claims arising from these cost-saving measures.
Area of Science:
- Health Economics
- Occupational Health Law
Background:
- Rising prescription drug costs present a significant financial challenge for employers.
- Employers are actively seeking methods to manage and reduce pharmaceutical expenditures.
Purpose of the Study:
- To examine employer strategies for controlling drug costs.
- To identify legal liabilities associated with these cost-containment measures.
Main Methods:
- Review of current employer-sponsored drug cost management programs.
- Analysis of legal precedents concerning employer negligence in drug management.
Main Results:
- Successful cost-control strategies often involve regulating employee drug utilization.
- These regulations can inadvertently increase employer liability for negligence.
Conclusions:
- Employers must balance cost-saving initiatives with the need to limit legal exposure.
- Proactive measures are essential to manage liability risks in drug cost control programs.
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