You probably already encourage employees to use generic drugs whenever possible, but to get the best results, you’ll probably want to give this tactic a try.
The tactic: give employees strong incentives for using lower-cost drugs.
For example: Some companies offer low- or no-cost co-payments to employees who use generic drugs to treat common health problems — such as diabetes or high cholesterol.
In most cases, a company’s prescription benefits manager (PBM) will contract with a local pharmacy (or several pharmacies). If employees purchase generic meds at an authorized pharmacy, then they won’t have a co-pay.
The payoff: Studies show that there’s approximately a 60% participation rate for generic utilization when PBMs offer this perk.