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Reduced Pharmacy Costs by $500,000 in Just 6 Months

Discover how our innovative pharmacy benefits strategy helped this leading truck dealership achieve dramatic cost savings while improving employee coverage.


Key Results

The Challenge

Rihm Kenworth, the second oldest Kenworth dealership in the country with a 75+ year history, is a well-known entity in Minnesota and across the transportation industry. With approximately 280 employees, Rihm Kenworth partnered with Cottingham & Butler to optimize their benefits strategy and control rising costs.


Why They Need Change

  • Benefit costs spiraling upward year after year

  • Specialty drug claims creating unsustainable cost surge

  • Previous provider's rigid plan design limiting options

  • Growth plans hindered by reactive benefits approach



The Cottingham & Butler Approach


In-Depth Analysis & Strategy Development

  • Utilized our exclusive Pharmacy Toolkit to collect and analyze claims data

  • Pinpointed cost drivers with proprietary Guided Pharmacy Solutions (GPS) process

  • Benchmarked against industry standards to secure competitive edge


Strategic Pharmacy Management

  • Developed a tailored strategy, recommending the optimal combination of ControlRX and NaviCareRx programs

  • Aggressive program management cut pharmacy costs by 71%, reducing per-member per-month (PMPM) spend from $165 to $48

  • Projected YTD annual savings of ~$500,000


Enhanced Clinical Oversight

  • Applied advanced drug management strategy, reducing specialty drug costs while protecting member access 

  • Maximized patient assistance programs to lower costs for both employer and members 

  • Delivered successful clinical oversight with minimal disruption to member care


Network Optimization

  • Maximized carrier relationships to transform regional coverage into nationwide access 

  • Expanded access to care for employees, doubling provider options without increasing costs 

  • Improved employee satisfaction through broader provider choice and improved coverage for out-of-state care


 

"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." - Rihm Kenworth

Ready to revolutionize your HR processes? Contact us today to begin your journey!



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