November 25, 2021

What you need to know about employer healthcare

The most common form of health coverage in the US, employer healthcare has been a cornerstone of the health system since World War II. From its beginnings, as a wartime inflation tactic to help employers attract staff without increasing pay, employer healthcare has grown to become a big business.

Now a key feature of most remuneration packages for employees, healthcare coverage is an important consideration for your workers and their dependents. If your healthcare benefit is not competitive, you may lose out on attracting the best talent or find it difficult to retain your top workers.

If you are looking to review your current offering, here is everything your business needs to know to make the right decision for your workforce.


The current state of employer healthcare

In 2019, US employers spent over $813 billion on group health insurance coverage. By 2021, average annual premiums for employer-sponsored health insurance had grown to $7,739 per employee for single coverage and $22,221 for family coverage. Meanwhile, family coverage premiums have risen over the last decade by 47%, with no sign of this trend changing.

With rising premiums and a plethora of insurance offerings, finding the right employer healthcare plan for your business can be a tough ask. Which is why so many employers end up staying with their existing insurer or put their faith in a broker to secure a better deal. 

However, there are other ways to provide healthcare benefits to your employees that don’t rely on the complexities of the insurance system.


A different approach to employer-sponsored healthcare

If you’re keen to cut costs and make a real difference in the lives of your employees, there is another way. Moving away from relying solely on the standard insurance model of care, there’s the opportunity to offer an employer pharmacy plan that could deliver big benefits for you and your staff.

For a low monthly fee, a typical pharmacy plan covers the costs of prescription medication for your employees. By offering a supplemental pharmacy benefit, your employees can easily access the medication they need to enhance their health and wellbeing.

By covering the cost of chronic medications for your employees, you can save money on insurance premiums, reduce insurance usage, improve health outcomes and boost productivity. In most cases, for one low monthly cost, your employees can access prescribed medications for themselves and their dependents, saving them thousands of dollars.

With the right medication in place and your employees’ health needs in check, they will be more focused on their work, find more ways to innovate and feel more confident in their role. 

Which is all very good news for your business.


How employer pharmacy plans compare to standard employer healthcare

The main difference is in the coverage offered by each plan. While standard employer healthcare plans provide broad coverage for pharmaceuticals, as well as primary care and hospitalization, employer pharmacy plans are focused solely on covering the cost of prescription medication.

A supplementary plan is not designed to entirely replace employer-sponsored healthcare. Instead, these pharmacy plans offer an extra benefit for employees that not only rewards them for their efforts but also plays a big role in helping them stay on top of chronic illness. As an added bonus, they might also help you save money on your insurance premiums too!

Standard employer healthcare


Broad coverage

Tied to insurance

Variable premium

Employer pharmacy plan




Fixed cost


Could an employer pharmacy plan be the answer for your business?

Are you interested in obtaining the following benefits? If so, then an employer pharmacy plan could be just the thing for your business.

  • Reduced absenteeism - with simple and affordable access to medications, your employees are more likely to manage chronic conditions and enjoy better health.
  • More productivity - with easy access to the medication they need, your employees’ health will improve, leading to increased productivity and improved performance.
  • Decreased insurance costs - with reduced illness and leave, your employees will make fewer claims and you’ll see a decrease in your health insurance costs across the board. 
  • Improved recruitment - your healthier and happier workforce will boost employee retention rates and help attract the interest of potential staff to boost your business.
  • Fixed costs - instead of focusing on how much your health costs rise each year, investing in a pharmacy plan means you’ll always know how much it will cost.


The benefits of offering an employer pharmacy plan to your workforce

If you truly care about the health and wellbeing of your workforce, consider offering an employer pharmacy plan to secure these benefits.

  • Better health - with easy and affordable access to medication for chronic conditions, your employees have the tools to look after their health and wellbeing.
  • Affordability - with no requirement for copays or deductibles, your employees can afford all the medication they need to stay on top of their conditions.
  • Family coverage - extending pharmacy coverage to your employee’s family members not only improves health outcomes but also reduces the need for leave.
  • Home delivery - instead of having to go to the pharmacy outside of work hours, employees can receive their medication delivered straight to their door.
  • Auto refills - offering the benefits of an automatic refill service ensures your employees never forget their medication so they are free to perform at their best.


Discover HomeMed’s affordable alternative to employer healthcare

HomeMed is a nationally licensed pharmacy that’s ready to work with employers to provide trusted pharmacy services to employees. Independent of the insurance system and firmly focused on improving medication adherence, HomeMed is committed to helping you improve the health and wellbeing of your workforce. 

With HomeMed, there are no copays or deductible limits. As a standalone plan, you avoid the hassle of having to work with insurance companies and the complexity of calculating coverage. For just $10 a month, your employee (and their dependents) can access prescription medications listed in your formulary, enhancing their health and boosting their productivity.

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