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Quick Takes: July 11, 2007
  

Shifting Drug Costs to Employees Leads to Increased Disability, Lost Productivity


When employers raise employee out-of-pocket expenses, the use of prescription drugs decreases, according to a recently published study.
By Jeremy Smerd

Higher Employee Expense Means Less Productivity: Shifting pharmaceutical costs to employees leads to increased disability and lost productivity, according to a recently published three-year study conducted by the nonprofit Integrated Benefits Institute.

Using data aggregated from 17 employers that cover a total of 1 million people, researchers at the San Francisco-based nonprofit organization concluded that when employers raise employee out-of-pocket expenses, the use of prescription drugs decreases. In the long term, employee health declines.

The study, released June 27, gives added weight to programs offered by employers like Pitney Bowes, the University of Michigan and the city of Asheville, North Carolina, which subsidize the cost of prescription drugs in order to increase the use of medicines that keep employees healthy and productive at work.


Jeremy Smerd is a Workforce Management staff writer based in New York. E-mail editors@workforce.com to comment.


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