Prescription drug plans, sometimes referred to as PDP, are on the rise. Just in 2020 alone, the Kaiser Family Foundation reported that there was a 5 percent year-over-year increase in the number of prescription drug plans available in the marketplace. As more plans become available, we explored three contributing factors as to why prescription drug plans will continue to be in demand now and in the future.
More Than Half of the Population Uses Prescription Drugs
From antibiotics to treatments for chronic illness and rare disorders, a Consumer Reports survey found that 55 percent of Americans regularly take prescription medication. What’s perhaps even more intriguing is that those who take prescription drugs take an average of four different types of medication per day.
These statistics are part of a growing trend in the use of prescription medication over the years. According to health research firm Quintile IMS, the number of prescriptions filled for American adults and children rose 85 percent between 1997 and 2016, from 2.4 billion to 4.5 billion a year. Looking to the future, the Centers for Disease Control and Prevention (CDC) expects prescription drugs spending to represent a larger portion of overall health spending over time.
Older Generations Rely More Heavily on Prescription Medication
When looking at the demographics of people who regularly take prescription medication, it should come as little surprise that older generations rely more on medical and therapeutic prescription drugs than any other generation. The CDC reports that about 91 percent of those 65 years and older and 69 percent of those ages 45 to 64 take prescription medication, compared to about 38 percent of those between ages 18 and 44. While Generation Z and Millennials currently outnumber these older generations in the workforce, the demand for more prescription drug coverage will likely increase over time as the two generations mature.
Majority of Workforce Values Comprehensive Health Coverage
When it comes to receiving comprehensive coverage, a survey by America’s Health Insurance Plans (AHIP) found that 51 percent of respondents place the most value on health plans that cover much of the cost of prescription drugs. While older generations do rely more heavily on prescription medication and contribute to that statistic, younger generations wouldn’t necessarily waive that kind of coverage. In fact, one in three Millennials has turned down a job because of poor insurance offerings. When it comes to putting together a comprehensive benefits package, prescription drug coverage may be worth considering for Groups of all demographics.
What This Means for Small Group Brokers
Staying up to date on health insurance trends is important for Brokers to stand out from the competition when quoting small Group benefits. As prescription drug coverage becomes more in demand, Brokers will need the right technology to streamline and simplify the benefits enrollment process for their Groups. Whether it’s prescription drug coverage, health insurance or other ancillary benefits, FormFire allows Brokers to quote, sell and enroll from one platform, making the cross-selling and benefits election processes much easier. Contact FormFire today to learn more or to request a free demo.