Growing use of drug formularies seen: survey.(survey of 150 large companies by William M. Mercer benefits consulting firm)

National Underwriter Life & Health-Financial Services Edition, May, 1996 by Bell, Allison

Benefits consulting firm William M. Mercer predicts more companies will start limiting employee prescription benefits through use of formularies, lists of drugs eligible for coverage. In a 1995 survey, only 9% of the 150 firms which responded said they now use formularies, but 67% hoped to implement such programs. Health maintenance organizations and other plans which use formularies say they cut down costs and improve drug therapies. Many systems give employees financial incentives to use listed drugs.

Employers continue to fight high drug costs by limiting prescription coverage, according to a study recently completed by William M. Mercer.

When the New York benefits consulting firm mail surveyed 600 large employers last year, 77 percent of the 150 respondents said...

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