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.
"Our collaboration with Cottingham & Butler has been transformative. Not only did we achieve substantial cost savings—nearly half a million dollars in just six months—but we've also significantly improved our employee benefits package."
JB | Chief Operating Officer, Rihm Kenworth
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
