communicate pharmacy benefits to employees

Open Enrollment Prep: How to Communicate Drug Savings to Employees

October 28, 2025

Key Takeaways

Time communications strategically: Start prescription savings discussions 1-2 months before open enrollment, during new hire orientation, and whenever formulary changes occur to maximize employee engagement and understanding.
Use multiple communication channels: Combine digital methods (emails, webinars) with printed materials and interactive workshops to reach employees with different learning preferences and increase message retention.
Highlight specific savings programs: Emphasize resources like Inside Rx, which may offer up to 80% savings on medications, alongside generic alternatives and prescription assistance programs to provide concrete cost-reduction opportunities.
Personalize messaging with data: Segment communications based on employee medication usage patterns and potential savings opportunities to create more relevant and actionable guidance for different workforce segments.
Promote healthcare consumerism: Educate employees about price comparison tools, formulary navigation, and generic vs. brand-name options to empower informed decision-making that benefits both individual finances and organizational healthcare costs.

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Prescription drug costs rose 15.2% from January 2022 to January 2023. This upward trajectory creates significant challenges for benefits administrators responsible for communicating pharmacy benefits to employees.

Americans allocated $535 billion toward prescription medications in 2020. Employee surveys reveal that 60% experience difficulty selecting benefits, while only 30% express confidence in their choices. This gap between available benefits and employee understanding directly affects health outcomes and financial stability.

Healthcare cost analysis demonstrates the magnitude of this issue. Employers report that prescription medications represent nearly 20% of their total healthcare expenditures. Employees lacking adequate benefits knowledge demonstrate reduced prescription filling rates and lower adherence to maintenance medications. These behaviors increase long-term medical costs and worsen health outcomes.

Cost-saving solutions exist within current benefit structures. Inside Rx provides potential savings of up to 80% on prescription medications for eligible employees. Preventive medication utilization could reduce U.S. healthcare system costs by $300 billion annually. Employee satisfaction data shows that 75% of workers who understand their benefits report higher job satisfaction.

This guide provides specific strategies for communicating prescription savings opportunities during open enrollment. The information focuses on helping employees identify cost-reduction methods while maximizing their existing benefits.

Why Communicating Drug Savings Matters for Employers

The rising cost of prescriptions

Prescription drug prices represent a primary driver of increased health benefit premiums across employer plans. Data from large firms shows that more than a third (36%) attribute significant premium increases to prescription drug costs.

Current pharmacy expenses constitute the fastest-expanding segment of health benefits, with 11.4% growth recorded in 2024 versus 2023. Projections indicate overall medicine spending will increase $116 billion between 2024 and 2029.

Specialty medication costs present the most dramatic financial impact. These treatments serve 1-2% of the population yet account for 55% of total U.S. prescription drug spending. Specialty drugs generate 51% of pharmacy benefit plan expenses while representing under 2% of total prescription claims.

How drug costs affect employee health and productivity

Prescription expenses create measurable impacts beyond direct healthcare spending. Cost analysis reveals that each $1 in medical and pharmacy expenses generates $2.30 in additional health-related productivity losses.

Medication affordability directly influences adherence patterns. Research documents that 30% of adults skip prescribed medications due to cost considerations. Separate analysis confirms 30% of survey participants discontinued medication because of financial barriers.

Non-adherence patterns escalate medical expenses over time. Studies of diabetes patients demonstrate that poor medication compliance correlates with increased mortality rates, higher healthcare service utilization, and elevated total medical costs.

Financial stress from prescription costs affects workplace performance indicators. Employees facing medication affordability challenges exhibit reduced productivity levels, decreased colleague interaction, and lower workplace motivation.

Inside Rx addresses these cost barriers by providing potential savings of up to 80% on prescription medications. Effective communication of such savings programs during open enrollment helps employees manage healthcare expenses while supporting workplace productivity and health outcomes.

When to Talk to Employees About Prescription Savings

Proper timing determines the effectiveness of prescription benefits communication. Specific periods during the employment lifecycle and benefits cycle offer optimal opportunities for employee education and engagement.

During onboarding and new hire orientation

New hire orientation establishes the foundation for benefits understanding. This period allows benefits administrators to introduce prescription drug coverage fundamentals, including access procedures for prescription information and savings programs such as Inside Rx, which may offer savings of up to 80% on medications.

Established onboarding protocols recommend providing detailed prescription information during orientation sessions. Benefits processing requires approximately two weeks from election submission date. New employees should receive guidance on prescription drug cost comparison tools available within their plan options.

Leading up to and during Open Enrollment

Open enrollment constitutes the primary annual decision-making period for healthcare benefits. The enrollment window typically spans from October 15 through December 7 each year, requiring employees to make critical coverage selections.

Prescription savings communication should begin one to two months prior to the enrollment period. Communication methods include emails, postcards, and HR announcements distributed as systematic reminders. Benefits administrators can develop targeted messaging that identifies high-cost medications and corresponding savings opportunities.

When plan changes or formulary updates occur

Prescription drug management program implementations require advance preparation. Employee acceptance of benefit changes depends on adequate preparation and clear communication of required modifications.

Formulary changes require proactive communication, allowing employees time to discuss alternatives with healthcare providers. Information provided to employees must clearly explain changes and available options. Educational sessions or webinars can address common questions about prescription drug coverage modifications.

Continuous communication through multiple channels maintains employee awareness of prescription benefit optimization opportunities.

How to Communicate Drug Savings Effectively

Communication method selection directly affects employee understanding and prescription benefit utilization rates. Research-based approaches demonstrate measurable improvements in employee engagement with pharmacy benefits.

Email, chat, and printed materials

Multi-channel distribution increases message reach and retention rates. When combining direct mail with digital marketing it’s likely to see a significant lift in activation and retention. Trifold brochures detailing prescription savings opportunities and medication safety posters serve as reference materials employees can access repeatedly. Printed materials register as more "personal and meaningful" compared to digital-only communications.

Workshops and webinars

Interactive educational formats address specific employee questions about prescription costs. Webinars titled "reducing pharmacy costs" or "prescription savings strategies" enable real-time Q&A sessions. These sessions provide detailed guidance on benefit navigation and cost-comparison techniques.

Using data to personalize communication

Message customization improves engagement metrics significantly. Pharmaceutical companies report that "comparing results of different message types sent to patients empowers them to develop more effective content”. Employee segmentation based on medication usage patterns or savings potential creates targeted messaging opportunities.

Promoting responsible healthcare consumerism

Decision-support tools require clear presentation standards. Pharmacy Benefit Administrators achieve better outcomes by "ensuring formularies are accessible, visually organized, and written in plain language”. Coverage tier explanations, copay comparisons, and generic alternative information enable informed employee choices. Inside Rx offers employees savings of up to 80% on prescription medications through this consumer-focused approach.

Programs and Resources That Support Savings

Multiple cost-reduction resources exist beyond standard benefit packages. These programs provide specific savings mechanisms that employees can access during open enrollment decisions.

Prescription Assistance Programs (PAPs)

Pharmaceutical manufacturers operate assistance programs targeting low-income individuals and those with specific medical conditions. AstraZeneca's AZ&Me™ program provides qualifying uninsured individuals with medications at no enrollment cost. These programs typically require income verification and medical documentation for eligibility determination.

Inside Rx Prescription Savings Card

Inside Rx provides employees with savings of up to 80% on prescription medications. Visit InsideRx.com to easily search for and compare the price of your medications at pharmacies near you. Then download, email, text or print the Inside Rx card or download the Inside Rx app and present it at any of the 60,000 participating pharmacies nationwide to see how much you can save on your prescriptions.

Generic vs. brand-name education

Generic medications generate $3 billion in weekly savings for the U.S. healthcare system, totaling $150 billion annually. Generic options cost up to 85 times less than equivalent brand-name medications. Employee education about bioequivalence standards and FDA approval processes increases generic utilization rates.

Partnering with third-party vendors

Third-party prescription assistance companies monitor industry pricing changes, research available programs, and manage employee medication portfolios. These vendors function as benefits team extensions, providing specialized expertise in pharmaceutical cost management and program navigation.

The Inside Rx prescription discount card works like a coupon to save on the cost of prescription medication at your local pharmacy.

Amoxicillin

^$ 4.80

Reconstituted Oral Suspension, 400mg/5ml (Package Of 75.0 Ml)

1 Package

Ibuprofen

^$ 5.45

Tablet, 400 Mg

30 Tablets

Conclusion

Rising prescription drug costs require structured communication strategies during open enrollment periods. Employees with adequate benefits knowledge demonstrate improved healthcare decision-making patterns, resulting in cost reductions for both individual workers and organizational healthcare expenditures. Clear explanation of available savings opportunities produces measurable improvements in medication adherence rates, health outcomes, and workplace productivity metrics.

Multi-channel communication approaches yield optimal results when educating employees about prescription savings. Email campaigns, printed materials, and interactive workshops address different employee learning preferences. Personalized communications based on medication usage patterns increase engagement rates and comprehension levels.

Inside Rx warrants specific attention within benefits communication frameworks. This program may offer employees savings of up to 80% on their prescription medications, delivering quantifiable financial relief. Prescription assistance programs, generic medication education, and price comparison tools enable informed healthcare consumer behavior.

Communication timing affects program utilization rates. Strategic messaging during onboarding, pre-enrollment periods, and formulary changes maintains employee awareness of prescription benefit optimization methods. This approach builds workforce confidence in healthcare option navigation and medication cost management.

Structured prescription savings communication creates mutual benefits. Employees receive financial relief and improved health outcomes while organizations gain enhanced workforce productivity and reduced healthcare costs. Open enrollment communication planning should commence immediately to maximize employee access to available savings opportunities.

References

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