Leading the Battle Against High Pharmacy Costs
October 7, 2022
Real estate firm becomes one of the first to try a new pharmacy program and finds relief from extreme prescription costs.
Real estate firm becomes one of the first to try a new pharmacy program and finds relief from extreme prescription costs.
The commercial real estate firm Kessinger Hunter & Co. had been following a fully insured approach to their employee benefits for years. With approximately 150 employees on their plan, The Miller Group helped transition the company to a self-insured model in 2016.
After becoming self-funded, Kessinger Hunter went through two years of high claims costs. A key culprit was the cost of prescription drugs. The Miller Group’s financial analytics revealed that high usage of specialty medicine was fueling the company’s pharmacy spending.
A creative solution was needed to tackle the company’s pharmacy spend. Advisors at The Miller Group had recently vetted a new specialty pharmacy program that could help Kessinger Hunter reduce the cost of select high-cost drugs.
The program utilized patient assistance programs created by pharmaceutical companies, providing financial assistance to help cover the cost of medicines.
Kessinger Hunter’s program utilized a partner that took care of all the paperwork generally left to employees and the company. Neither Kessinger Hunter’s employees nor HR staff had to lift a finger to get the medicines they needed at the discounted rate.
Kessinger Hunter’s willingness to try a new program and place their trust in The Miller Group’s resources provided immediate relief. Over the past two years, the company has saved approximately $650,000 through the prescription program and being self-funded.
Overall, strong management of their self-funded benefits program has led to a 20% reduction in their per employee per month (PEPM) cost.
The savings have been astonishing for Kessinger Hunter. Their employee benefits advisor and account team at The Miller Group keep in regular contact to review the latest data and financial analytics. Together, they are showing that trying out a new program that has been carefully analyzed can bring significant results.
“We have had an outstanding relationship with our Miller Group team since 2012. They have consistently provided great service and advice for our employee benefits programs. We recently implemented a specialty drug program in our self-funded plan and have saved over $650,000 the last two years. They prove themselves year after year. They are such nice people, too!“
Darold Frenzen, CFO
Kessinger Hunter & Co.