LHD has made significant investments to obtain an in-depth understanding of pharmacy costs and prescription benefit managers (PBMs). Our experience in PBM contracts has uncovered numerous hidden revenue streams and yielded multiple millions of dollars in savings for our clients. Our strategy includes:
As a mid-sized local company, the savings LHD identified was literally business-saving. They earned a client for life.
A client with a cost per employee substantially above local and industry benchmarks needed to have plan design and provider flexibility due to a collective bargaining agreement.
Solution: We carved out their PBM from the insurance company and negotiated a direct PBM contract. This direct contract improved Rx pricing for retail and home delivery purchases and significantly increased pharmacy rebates, reducing overall Rx costs without any noticeable disruptions to the members.
Results: Combination of reduced costs and increased rebates saved the client more than $250,000 over the 3-year contract.