How J.J. Keller Reduced Pharmacy Spend by 22%
The Situation
As a certified Great Place to Work®, J. J. Keller & Associates, Inc. is committed to providing high-quality, affordable healthcare for their 1,800 associates and their families.
In an effort to reduce associates’ need to shoulder an increasing healthcare burden as prices increase, their approach has been to find win-win solutions whereby they employ smart healthcare consumerism as a company so their associates and their families receive the medical care they need
Key Wins
Why They Needed Change
Despite partnering with a major health insurance provider, J. J. Keller's self-insured health plan faced mounting challenges:
14% year-over-year increase in pharmacy costs
Unfulfilled promises of 20%+ cost reductions through discounts and rebates
2,700 covered members affected by rising costs
Lack of transparency in vendor relationships and pricing structures
Misaligned incentives with existing PBM relationship
"This change was so impactful that we were able to give associates a 'premium holiday' in December to share in the savings during a costly time of year. We and our associates also have a renewed sense of faith in our ability to actually manage healthcare costs with the addition of new strategies going into 2025."
Amy Jansen | J. J. Keller & Associates, Inc.
The Cottingham & Butler Approach
Strategic Assessment
J. J. Keller engaged an external pharmacy consultant to:
Evaluate existing program effectiveness
Identify conflicts of interest in current partnerships
Move focus away from superficial "discounts" on inflated prices
PBM Transformation
The company transitioned to a new pharmacy benefit manager with:
Zero markup on dispensed medications
No retained rebates
Clinical focus on cost-effective alternatives
Pass-through pricing model
Independent, privately-held structure
Employee Empowerment
Implemented new support tools including:
Direct pharmacist consultations for medication alternatives
User-friendly prescription price comparison platform
Automated copay assistance enrollment
By focusing on transparency and alignment in their vendor partnerships, J. J. Keller transformed their pharmacy benefits program, achieving substantial cost savings while enhancing the employee healthcare experience.