Insurers are hiking pooling costs, and we don’t blame them. Don’t kid yourself: if you were about to write your name underneath a policy, I’d wager that you too would increase premiums. Our block at The Beneplan Employee Benefits Co-operative was hit hard in 2015 by several biologic drug claims. While drug companies are falling over themselves to acquire the rights of biologic drugs, plan sponsors and advisors are scrambling to react to this new normal.But what if we told you there’s a way to fight back against runaway costs on your employees drug benefits plan without compromising the care you provide them? This is called tiered drug formulary plan. A tiered formulary divides drugs into groups, primarily based on costs. The most generic drugs fall under the first tier and typically come at the lowest cost, while the expensive brand names take the upper tiers – which is partially covered by the employer and partially covered by the employee – or co-pay.The infographic below illustrates how a tiered drug formulary works and explains the plans many benefits