Success Story - "Employee Prescription
Drug Benefit Program"
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Company Description
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$5
Billion B2B Hardware/Software Supplier
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Company Situation
and Problem |
Company had one year left on a three year contract with a long-term Pharmacy
Benefits Provider, with no apparent way to reduce costs further. With 2000
plus covered lives, costs were about $2.4 million per year. Pharmacy
Benefits were considered very sensitive and “untouchable” in previous drives
to reduce costs.
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| Paladin Actions & Recommendations |
Paladin Associates Inc. collected detailed information on the Benefit
Plan, actual drugs dispensed, and costs to the Company. Paladin
reviewed this information with a consortium Pharmacy Benefit partner who
determined there were opportunities to reduce costs. Armed with this
information, the Company was able to renegotiate with the incumbent Pharmacy
Benefit Provider and immediately reduce costs on their existing contract,
plus ensure these savings for a follow-on 2-year contact.
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| Client Results |
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Implemented 9.5% Savings with Incumbent Pharmacy Benefit Provider |
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Projected Savings $225,000 first year. Total contract savings over $700,000 |
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Avoided possible disruption from changing Benefit Providers |
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Benefits Costs Reduced Mid-contract |
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