Prescription drug coverage is a significant cost factor to the health insurance premium. Many companies have increased copayment amounts and added more tiers (e.g., $10 generic/$20 brand name in formulary/$40 brand name not in formulary; the formulary is a list of medications that a health insurer gets a higher discount from the pharmacy benefit manager). The goal is to move patients to purchase using generic over brand due to the cost savings (and there is significant cost savings). I read an article earlier this year in "Medical Benefits" about companies that are applying $0 copays for generic scripts because of the price differentials.

Other non-insurance employee benefits also cost the company money and resources: vacation leave, sick leave, FMLA (which is required by the Federal government), and even holidays.

Visit with your benefits representative and inquire

1. what steps your company has taken to reduce their financial risks when it comes to employee benefits. For example, my company is looking to change their 2-tier prescription drug plan (generic, brand) to a 3-tier plan (generic, preferred brand, nonpreferred brand) with an increase in the copay's. The company should see an immediate 15% decrease in prescription drug costs, which is quite important since the company self-insures the health insurance risk.