Prescription drugs typically account for 70% of extended health costs. What if we could help you put spiraling drug costs on a nice sedative?
With prescription drugs typically accounting for 70% of extended health costs, we could clearly see that a different approach was needed. Managed Rx™ can help organizations of all sizes capture significant cost savings for the prescription drug component of their benefits plan.
So you don’t have to cut back on plan benefits, Managed Rx™ focuses on reducing the key cost drivers; the drug costs themselves, and the dispensing costs.
Managed Rx™ has two components:
A Tiered Drug Formulary
Generic drugs can cost significantly less than their brand-name equivalents. By introducing a tiered formulary (list of drugs) that encourages employees to choose generics and lower cost therapeutic alternatives, plans can realize significant savings. Generics and therapeutic alternatives are tested and approved to the same exacting Health Canada standards as their more expensive branded versions.
Central Dispensing Pharmacy (CDP)
GroupHEALTH has partnered with a central dispensing pharmacy (CDP), basically a large centralized pharmacy. Since they deal in large volume, plans and plan members save through reduced ingredient costs and lower (and less frequent) dispensing fees. Both are a product of group purchasing power and reduced overhead.
Managed Rx focuses on employee education to change behaviour, and lower costs. By making your staff active participants in how they access prescription drugs, Managed Rx™ encourages employees to purchase less costly, but equally-effective drugs through the CDP.
The process is easy:
- You tell your doctor that for full coverage, you must purchase your prescription from Alliance Pharmacy (a CDP)
- Ask your doctor’s office to fax or call in your prescription directly to Alliance Pharmacy (be sure to fax it to the Alliance Pharmacy location that services your province)
- Ensure your telephone number is included on the prescription
- Alliance calls to verify your order, and couriers your prescription directly to your home, work etc. so no more driving to the pharmacy, wasting 20 minutes ‘impulse buying’ and then paying exorbitant dispensing fees
Who says change is tough! When it comes to prescription drugs, this shift is key to dealing with rising costs. The less your employees spend ‘per transaction’, the further their benefit dollars go overall!