PROJECTED SAVINGS – OVER $93 MILLION
AEPC is pleased to announce the selection of CVS Health (CVS) as its preferred Pharmacy Benefits Manager (PBM) for the coalition. Remedy Analytics, Inc. (Remedy), AEPC’s prescription drug analytics advisor, conducted the Request for Proposal (RFP) for the July 1, 2019, to June 30, 2022, contract term. In addition to CVS, Remedy received proposals from Blue Cross Blue Shield of Michigan, Envision and OptumRx.
The CVS selection is based on its superior financial terms and leading- edge solutions targeted at controlling cost and improving the health of plan participants. The financial terms are projected to save in excess of $93 million —an estimated 12.4% improvement as compared to the current pricing. The offer also includes four months of early pricing, effective March 1, 2019. The CVS financial offer is over $20 million more attractive than that of the next closest bidder. The projected CVS savings are based on AEPC participating groups continuing with their current plan design, clinical programs, formulary, pharmacy network, etc.
AEPC member organizations have additional opportunities for greater savings by taking advantage of CVS’s many programs. For example, the adoption of CVS’s Advanced Controlled Formulary (ACF) program provides an estimated savings of 17.8% over the current pricing. CVS financial terms for this program is over 7.5% better than a comparable offer from another bidder. Each participating AEPC group can select the CVS Health’s program(s) that are best for them.
Remedy Analytics is a medication-centric data analytics company that harnesses raw claims data to empower employers and employees to make informed decisions that reduce costs, create efficiencies and improve outcomes. Remedy’s clients include sophisticated payers of PBM services in technology, financial services, telecommunications, utilities, media, insurance, retail, unions and government sectors. Remedy
is the only company in the prescription benefits space
whose technology, methodologies, and actuarial savings outcomes are certified by the Intel-GE Validation Institute.
AEPC is a labor-management coalition that was established in 1993 by organized labor. AEPC‘s mission is to enhance the quality of medical care and control the cost of health benefits provided to workers and their families under collective bargaining agreements. The AEPC coalition develops group purchasing programs, such as for prescription drugs, that controls cost and improves quality. Today, over 150,000 lives are covered are in the prescription drug program.