BINGHAMTON, N.Y. — The Broome County government expects to save at least $3.2 million on its health-care spending after joining a pharmacy purchasing coalition. That works out to more than 20 percent in savings on prescription costs for the county, says Thomas Dellapenna, Broome County risk manager. Last year, the county spent about $16 million […]
BINGHAMTON, N.Y. — The Broome County government expects to save at least $3.2 million on its health-care spending after joining a pharmacy purchasing coalition.
That works out to more than 20 percent in savings on prescription costs for the county, says Thomas Dellapenna, Broome County risk manager. Last year, the county spent about $16 million on prescriptions for the 6,000 people in its plan.
Those savings come from joining the Keenan Pharmacy Purchasing Coalition, a group of employers and health-care purchasers that says it negotiates better prices for members. Because the coalition represents about 600,000 individuals, it has a lot more leverage, says Dellapenna.
He notes that the county will pay $202,892 to belong to the coalition. Other savings are possible with other programs. A clinical program can save the county an estimated $1.5 million if physicians in the area write prescriptions to maximize value.
Some medications are much less expensive in different doses, so that a medication taken twice a day may be considerably less pricey than the same dose of the medication delivered once a day, Dellapenna explains.
Dellapenna recognizes that change may cause some disruption for people who have to remember to take a second dose and for doctors who will need to check one more thing before prescribing but, he says, the savings are substantial.
“Any time you can talk about saving millions of dollars, it’s a game-changer,” Broome County Executive Jason Garnar said when the program was announced in late February.
Dellapenna says those on county health plans won’t see any change in co-pays. Despite the savings from joining the coalition, health-care costs have steadily increased for the county.
“We’re a rich plan,” Dellapenna says, noting that compared to private-sector employers, the county pays a larger percentage of health-care expenses for plan members.
“Our costs are constantly on the rise so this just helps, he adds. Last year, Broome County spent $49 million on health care, he says, adding that all employees pay a portion of their health-care costs. The cost varies depending on the type of union involved.
About KPPC
The Keenan Pharmacy Purchasing Coalition says it delivers cost savings and prescription management-capabilities for self-funded clients through its group negotiating power. This leads to volume discount pricing, manufacturer rebates, lower dispensing fees, and increased use of lower-priced generic drugs.
KPPC says it is “powered” by Express Scripts (NASDAQ: ESRX), the largest pharmacy benefit-management services company in the United States. Express Scripts generated revenue of $100 billion in 2017.
Contact McChesney at cmcchesney@cnybj.com