USI presents cost-saving strategies for self-funded prescription drug plans

During the Dickinson County Commission meeting on July 17, 2025, a significant discussion centered around the potential benefits of transitioning to a self-funded health insurance plan. This shift could lead to substantial savings on prescription drug costs, which have become a pressing concern for many employers.

A key example highlighted was the medication Humira, which previously cost around $7,500 to $8,000 per month. With the expiration of its patent, multiple biosimilars have emerged, drastically reducing costs to approximately $700 per month. The discussion emphasized that under a self-funded plan, employers can receive rebates from manufacturers, unlike fully insured plans where these rebates do not benefit the employer. This financial structure allows for better management of healthcare costs and can lead to significant savings over time.

The meeting also referenced successful case studies from other organizations, such as the city of McPherson, Kansas, which transitioned to a self-funded model and reported substantial financial surplus as a result. The analysis presented indicated that after one year, there is a 72% probability that a self-funded plan will cost less than a fully insured plan, increasing to 90% after five years.

In addition to cost savings, the discussion touched on the importance of effective communication with employees regarding changes in health plans. Ensuring that staff understand the reasons behind the transition and the benefits of new medication options is crucial for minimizing disruption.

The meeting concluded with a call for further exploration of self-funding options, emphasizing the need for a trusted partner to navigate the complexities of health insurance and manage risks effectively. As Dickinson County considers this shift, the potential for improved financial health and better access to affordable medications stands to benefit both the county and its employees.