CASE STUDY | Economic Healthcare Victory: RxManage's Cost-Saving Impact in the Southern US
A case study
The Client
- County in the Southern US
- 1,000 covered lives
RxManage works with a County the southern US with approximately 1,000 covered lives and has extended the RxManage program to employees and their dependents at a $0 co-pay.
The Challenges
- Soaring costs associated with pharmaceuticals
- Lack of patient compliance
The costs of pharmaceuticals and lack of patient compliance were high, driving up overall healthcare costs. Through a full-program discovery process, the broker uncovered the pharmaceutical cost issues and knew there were solutions that would have a significant impact.
The Solution
- Revised client claims data to identify medications eligible for the RxManage program.
- Developed and provided marketing materials to educate members.
- Used the marketing materials to communicate to members in collaboration with the group's HR team.
- Conducted outreach calls to members eligible for the RxManage program.
- Offered continuous support to members for account setup and order placement.
- Provided detailed savings reports to the client.
RxManage meticulously analyzed client claims data to maximize cost savings, focusing on pinpointing medications that could yield significant cost benefits. By securing brand medications from international top-tier licensed pharmacies, we ensured up to 70% savings for the employer and eliminated employee co-pays. Our targeted approach identified key medications, and through personalized marketing and outreach, we empowered members to seamlessly transition to the RxManage program, enhancing both financial and health outcomes.
The Results
Over the past few years, RxManage has witnessed substantial cost reductions for the client and improved accessibility to medications for employees. From May to October 2023, RxManage filled 141 claims, resulting in $117,441 in savings. This is equivalent to a 52% reduction in medication costs. Despite filling only 1.73% of claims, RxManage contributed to an 8% savings on the group's total claims. These figures show significant cost savings and the efficiency of the program's financial management.
|
Claims from |
No. of claims |
% Claim total |
Cost |
PBM price |
Savings |
%Savings |
|
PBM |
8,005 |
98.27% |
$1,230,807.20 |
$1,230,807.20 |
$0.00 |
0.00% |
|
RxManage |
141 |
1.73% |
$106,238.41 |
$223,679.92 |
$117,441.51 |
52.50% |
|
Grand Total |
8,146 |
100.00% |
$1,337,045.61 |
$1,454,487.12 |
$117,441.51 |
8.07% |
By improving the overall effectiveness of the benefits program for both the employer and employees, RxManage achieved cost savings and improved patient compliance. This improvement is expected to contribute to a decrease in emergency room visits that may otherwise have resulted from the underuse of prescribed medications.