Success Story - "Employee Prescription Drug Benefit Program"
$5 Billion B2B Hardware/Software Supplier
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.
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.
- Implemented 9.5% Savings with Incumbent Pharmacy Benefit Provider
- Projected Savings $225,000 first year. Total contract savings over $700,000
- Avoided possible disruption from changing Benefit Providers