Keenan Pharmacy Program Saves Maryland Public School Consortium Millions on Prescription Drugs

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The Problem:

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Prescription drug costs are skyrocketing contributing to overall increases in medical costs for public schools. Eastern Shore of Maryland Educational Consortium (ESMEC) was looking for ways to reduce their medical costs without reducing benefits. Their health plan included pharmacy benefits and they thought that the barriers to carving out the pharmacy were too great to overcome.

The Solution:

Keenan Pharmacy Services was engaged to analyze their existing pharmacy plan to see if any savings could be achieved through carving out pharmacy and what impact that would have on their current members. Keenan suggested a solution that included joining the Pharmacy Purchasing Coalition (KPPC) and the clinical care management program with a projected savings of $1 million in the first year.

The Results:

By carving out their pharmacy benefit and implementing the Keenan Pharmacy solutions, ESMEC realized savings of $2.3 million in the first year, compared to their prior program – more than double the projected savings. The Keenan programs brought lower claims cost, higher rebates, greater transparency and no disruption to the members’ network. 

But the savings didn’t stop after the first year. Keenan was able to negotiate a contract for ESMEC that provides additional savings each year. Due to contract improvements, ESMEC saw an additional savings of $1.1 million in year 2 and $1 million in year 3 of the Keenan program.

In a world where increasing pharmacy costs are the norm, organizations working with Keenan have a contract that continues to lower the base cost each year.

“The Keenan Pharmacy program has consistently outperformed our expectations and their projections as year over year savings have far exceeded forecasts. You are not fulfilling your fiduciary responsibility if you don’t strongly consider engaging Keenan to manage your pharmacy benefit plan.”

- Milton E. Nagel, CPA, Chairman, ESMEC Health Insurance Alliance

Hear from Milton about how Keenan Pharmacy Services saved his organization millions.