NEW: Providence Councilman Calls for More Savings in Prescription Benefits Contracts

Monday, July 16, 2012

GoLocalProv News Team

Providence City Councilman David Salvatore this week will introduce a resolution requesting an independent audit of the City’s pharmacy benefit management (PBM) agreements, according to a press release sent today.

Salvatore said those contracts contain a maze of technical information and numerous triggers which increase costs for the city. His resolution will propose to hire a company called Remedy Analytics to examine the city’s PBM agreements with an eye toward identifying savings and ensuring the city is getting the best possible deal.

“We need to get an outside, independent assessment of how these contracts work and what possible savings are there for the city,” said Salvatore. “Remedy Analytics has a strong track record of helping municipalities and businesses identify those savings.”

Salvatore added, “The team at Remedy Analytics knows how these contracts work and possess the ability to uncover the hidden costs which are typically built in to these contracts. And, because Remedy Analytics is paid a portion of the savings they find, there is a strong incentive to dig deep and help reduce unwarranted costs. There is no upfront cost to the city, only a chance to enact real savings.”

The City Council will consider a resolution sponsored by Salvatore at a Council meeting scheduled in the future. Representatives of the company will make a presentation as part of that process and, if approved, the proposal will go before the Board of Contracts and Supplies which will consider whether to award a 3-year contract to the Milwaukee, Wisconsin-based firm. Salvatore said clients using Remedy Analytics typically see a savings average of 9-16% in terms of prescription drug costs. He said the company has worked with a number of municipalities and companies including many of the largest payers of PBM services in the country.

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Remedy Analytics uses proprietary technology to break down and benchmark the prescription benefits claims data for large employers. The company will make a proposal to the city detailing transparent savings that can be achieved without disrupting the current benefits structure.

“I’m excited with the prospect of bringing in experts with a track record of success to more effectively monitor our PBMs,” said Council President Michael A. Solomon. “I look forward to learning if the City is in fact losing out in the hopes that we can continue to improve Providence’s financial standing.”

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