Choice Strategies introduces RxAbility solution

Choice Strategies - a leading provider of consumer-directed benefit programs - today launched RxAbility, an automated health reimbursement account (HRA) solution that allows employers and employees to share increasing out of pocket pharmacy costs.    

RxAbility is a paperless, debit card-based solution that enables employers to define customized cost sharing arrangements for Rx on a transaction by transaction basis instantly at the point of sale.

"This new automatic debit card-based feature makes it easy for employers to implement pharmacy cost sharing plans that strengthen participant engagement, encourage responsible utilization and increase plan satisfaction," said Nicole Williams, Senior Director, Choice Strategies. "It's a solution that helps advance the goals of consumer-driven healthcare for both employers and employees."

Unlike medical deductible expenses, which do not require upfront payment, pharmacy expenses must be paid at point of sale. Until now, employers seeking to help employees with a portion of their Rx expenses have had limited options.

Traditional health debit cards have only given employers the option to pay either 100 percent or zero percent of each Rx claim. While partial pay plans are available through some HRA administrators, they require employees to pay up front and then submit manual claims for reimbursement of their employer's contribution. This can be a significant financial burden and a source of frustration for employees and often results in 'all or nothing' plans rather than cost sharing arrangements where the employer pays a percentage of each Rx expense.

"Employers are increasingly offering consumer-directed health plans (CDHPs) to their employees and need solutions that encourage participation and increase satisfaction," said David R. Oscar, Managing Member, Altigro Resource Group, LLC, a New Jersey-based insurance agency. "Eliminating the need for participants to pay out of pocket at the point of sale for pharmacy will make it easier and more attractive to offer and participate in a CDHP with HRA and flexible spending accounts (FSAs). This is a functionality the industry needs."

 RxAbility can work with any carrier health plan and be customized to match the financial goals and benefit needs of both small and large employer groups. It can be implemented as a stand-alone HRA solution that only pays for Rx instead of higher health plan premiums for an Rx Rider or be paired with a high deductible health plan (HDHP) with HRA for medical deductible expenses and employee-funded FSAs.

"RxAbility delivers automatic cost sharing at the point of sale for pharmacy transactions regardless of how the plan is designed or administered," said Williams. "It's a flexible solution that can provide benefits to carriers, third-party administrators (TPAs), members and participants."