Rihm Kenworth Achieved $500,000 in Pharmacy Savings
Case Study
With Cottingham & Butler's Innovative Approach
Improved Coverage
Transition to United Healthcare provided employees with a robust national network & improved coverage flexibility.
Cost Savings
Cut Pharmacy Costs by
$500,000
reducing per-member per-month (PMPM) spend from $165 to $48 – that's a 71% reduction.
Employee Benefits
Savings allowed for reinvestment in employee-centric programs.
The Challenge
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Rapidly increasing benefits costs year over year
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Limited flexibility with previous provider (HealthPartners)
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Multiple large specialty medication claims driving costs
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Need for more proactive, innovative benefits strategies to support growth
LOCATION
Minnesota
SIZE
~280 Employees
INDUSTRY
Commercial Truck Dealership
The Cottingham & Butler Approach
In-Depth Analysis & Strategy Development
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Utilized our Pharmacy Toolkit to collect and analyze Rihm's claims data
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Conducted a thorough drug review to identify cost-saving opportunities
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Benchmarked against industry standards to pinpoint improvement areas
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Developed a tailored strategy, recommending the optimal combination of ControlRX and NaviCareRx programs
Strategic Pharmacy Management
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Implemented our proprietary Control RX and NaviCareRx programs
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Cut pharmacy costs by 71%, reducing per-member per-month (PMPM) spend from $165 to $48
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Projected YTD annual savings of $459,000
Data-Driven Cost Control
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Transitioned from a limited Minnesota-based network to United Healthcare's comprehensive national network
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Expanded access to care for employees across the country while maintaining cost efficiency
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Improved employee satisfaction through broader provider choice and improved coverage for out-of-state care
Enhanced Clinical Oversight
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Ensured appropriate medication usage through specialty exclusions, orphan medication exclusions, and patient assistance programs
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Achieved significant savings with minimal disruption to employee care, maintaining high satisfaction levels.
Looking Ahead
As Rihm Kenworth builds on this success, the focus remains on maintaining and extending the benefits of their optimized pharmacy program:
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Continuous monitoring and adjustment of the pharmacy benefit strategy to ensure sustained cost control
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Regular analysis of utilization trends to identify and address emerging cost drivers proactively
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Ongoing evaluation and implementation of innovative cost-saving measures, such as new drug management programs and procurement strategies
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Periodic benchmarking against industry standards to maintain a competitive edge in benefits offerings while managing costs effectively