It is estimated that by 2006 drug costs will increase by 93.4% and the average price per member per year will be over $1,150 in 2006.

One popular means of reducing group health insurance premiums is to offer alternative prescription drug plans, leaving employees footing the bill for elevated drug costs and financially unable to do so. There are alternatives.

UGP offers several Prescription Drug Carve-Out options for employers who need to reduce their group health premium by offering reduced Rx benefits. By replacing the current prescription drug plan with a Generic-Only Plan, employers can save up to 28% on their health insurance premiums. Sometimes using a Stand-Alone Plan is all that is needed to cut costs.

Multiple Options & Custom Design:
$5 Generic/$30 Preferred Brand Drug Cards
$5 Generic Only Rx Card, Brand Drug Discounts
$10/$20/$40 Copay Discount Rx card
Discount Generic/Brand Rx Card

Self-Funded Prescription Drug Carve Out
UGP also offers the option of fully insured clients to carve out their fully insured prescription drug benefit with their major medical carrier and to replace it with a self funded prescription drug plan. This allows employers to cut costs on their prescription drug plan from up to 20% to up to 40%. It also allows employers to create their own plan design.

Employers also receive money from the pharmaceutical manufacturers in the form of rebates for utilization of drugs.