Health Plan Pharmacy Cost Controls
Brown & Brown performed an initial market check of the PBM agreement in place. This provided financial benchmarking across all financial areas of the contract, along with a negotiation for a contract extension that allowed time to perform a full Request for Proposal (RFP) process.
Brown & Brown focused on strategic and financial aspects of the PBM relationship to help ensure the vendor partner complements the health plan’s overall strategy and provides a market-leading financial arrangement and program offering.
The results of these exercises included the following:
- $18M (6%) in pharmacy savings over the one-year market check term
- $45M (13.8%) in pharmacy savings over the three-year RFP term
The RFP did not result in a vendor change, so the results were achieved without disruption to the business or need for an implementation process.
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