Caremark to save Rockefeller $150,000 per year

by ZACH VEILLEUX

A decision to replace the company that manages prescription drug benefits for personnel enrolled in The Rockefeller University Group Health Care Expense plan, implemented in March, is expected to result in cost savings of at least $150,000 per year, according to Virginia Huffman, vice president for human resources.
The new benefit manager, Caremark, began processing pharmacy claims and mail-order prescriptions on March 1. The change applies only to those who participate in the health care plan administered by The Principal Financial Group; there is no change for those who receive health benefits through Oxford Health Plans.
“Our goal in choosing providers is to get the best value for the university and to get excellent customer service for the plan’s participants,” says Ginny Hansen, director of benefits. “We also work to minimize the disruption caused by any changes we make.” Although it means a different Web site and phone number, and new ID cards, the switch from Express Scripts to Caremark resulted in very few participants needing to change pharmacies.
“Most major local and national chains, as well as the independent pharmacies used most commonly by our community, are in Caremark’s network,” Ms. Hansen says.
The opportunity to switch providers arose when Human Resources looked at the aggregated data on all claims paid in 2008 as part of their regular annual review. The analysis, which is based on the retail and mail-order prescriptions actually filled by Express Scripts in 2008, suggested that switching to Caremark could save an estimated $150,000 in 2009. The savings were confirmed by the university benefits consultant, Mercer, which also showed that Caremark had similar ratings to Express Scripts in terms of customer satisfaction.
The savings, which Caremark achieves by negotiating better prices from drug manufacturers, will be helpful at a time when the financial markets continue to be unpredictable.
“This was an easy decision because there was an opportunity to save money with relatively little disruption and no downside,” says Ms. Huffman. “We continually review our benefits coverage to ensure we are receiving the best value and are also getting good service and easy access to the facilities our community uses the most.”