The Pittsburgh Business Group on Health proves that employers banding together, especially as a purchasing bloc, can make a difference.
In 2006, the employer-led coalition's prescription drug program yield only a 3.7% increase in spending, compared to the national average of 14%. The group's participants and their workers saved $21.5 million, according to PBGH. Other similar coalitions reported increases ranging from 4.4% to 5.6% last year.
Under the prescription drug program, Pittsburgh-based employers can buy prescription drug benefits in a carved-out, self-insured arrangement with coalition discounts.
To verify its numbers, the group hired Arxcel, an independent auditor of pharmacy benefit managers, which reported it found no errors due to benefit designs when auditing the claims paid for 26 member employers participating in the program.
"The results of our program over the last three years have been very impressive and extremely consistent, especially when you take into account that 20% of the members covered under the program are over 65 years old," says Christine Whipple, executive director of PBGH, which has over 60 members.
