Case Study: Big Savings, Zero Disruption
Manufacturer 'Never Thought There Was that Much Money Left on the Table' in PBM Contract Negotiations
Case Study: Big Savings, Zero Disruption
Manufacturer 'Never Thought There Was that Much Money Left on the Table' in PBM Contract Negotiations
Client Profile
Industry: Manufacturing | Members Covered: 416 | Prescriptions Filled Annually: 16,000 | Savings: $2M
Industry: Manufacturing
Members Covered: 416
Prescriptions Filled Annually: 16,000
Savings: $2M
The Challenge
The company hired Remedy Analytics because it needed to reduce spend, but it did not want to change its vendor nor disrupt employee Rx benefits. As a pharmacy benefits solutions provider, Remedy had a proven track record of working with the company’s benefits broker, which recommended Remedy to review the company’s current carved-in Rx contract.
When Remedy conducted a renewal for the pharmacy benefit for three years, it quickly identified major contract issues that were costing the company and its employees money.
The Solution
Remedy had a long-standing working relationship with the carrier/PBM being used, and on numerous occasions Remedy had conducted standard Renewal Requests for the incumbent. Given that pre-existing relationship with the PBM and Remedy’s proactive approach, Remedy secured an updated renewal proposal that met nearly all of Remedy’s required definitions and criteria. Moreover, Remedy was able to secure an agreement with the PBM to apply these updated terms for all future proposals. This tactic drastically improved the contract in favor of the client with a renewal savings of 41%, some $2M over three years.
Not only did Remedy secure a substantial savings of $2M for its client, but it also did so without changing the client’s PBM or plan design, which meant no disruption for the plan members.
“This goes a long way in helping us reach our savings targets. I never thought there was that much money on the table.”
The Results
Remedy’s client engagement team continues to work with this PBM to negotiate contract language that can be incorporated into all of its contracts for mutual clients.
