Your Customers' Cost Shifting May Be More Devastating Than Money-Saving

The study, titled, "Substitution, Spending Offsets and Prescription Drug Benefit Design," shows that employers save money by increasing copays for prescription drugs and as a result employees buy fewer prescription drugs, reports the Pittsburgh Post-Gazette. But the unexpected effect is that employees turn to health-care "substitutions" to compensate for the absence of prescription drugs, the Post-Gazette says. These substitutions result in more doctor and emergency room visits, according to the study.

The study concluded that "35 percent of corporate savings on prescription drugs are 'substantially offset' by increases in other medical spending, including outpatient care," reports the Post-Gazette.

Managed Care Report covered the effects of cost shifting in July's issue. Go to www.medicineandhealth.com/spec--managed--care.htm for more information.