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County pharmacy use rises; benefits staff report increased medical claims and $22,000 monthly prescription savings
Summary
Employee benefits staff told the budget board that medical claims are above last year’s levels while prescription costs show improvement; the county pharmacy has increased prescription fills and staff estimate current monthly savings of about $22,000.
County employee-benefits staff reported to the Oklahoma County Budget Board that medical claims through September are higher than the previous fiscal year but that the county pharmacy program is reducing prescription costs and gaining utilization among employees.
The presenter said medical claims are about 21% higher than the comparable period last fiscal year (15 weeks of claims this year versus 13 weeks in the prior year), a gap that has narrowed from a 29% variance reported in August. The presenter attributed part of the prior variance to the timing of UMR beginning to pay medical claims last fiscal year and said claims experience should normalize as processes continue.
On prescription spending, staff said prescription claims were an apples-to-apples 15 weeks in each period and that prescription costs are down by $521,000 (about 20%). County staff highlighted the county pharmacy, which the presenter said filled 940 prescriptions in February totaling $147,000 and 1,530 prescriptions in September totaling $406,000, representing growing use of the county pharmacy. Staff estimated the county is saving about $22,000 per month currently through the pharmacy program and said they are negotiating with a drug manufacturer to obtain lower prices that could further reduce costs.
Employee-benefits staff said overall net expenditures are $524,000 over the prior fiscal year year-to-date but remain within the budget (about 7% over). The benefits presenter said the program will provide additional utilization and savings detail to the board at a future meeting.
Why it matters: County-managed pharmacy services and benefits-management choices affect both employee costs and the county’s overall health-care budget; continued growth of the county pharmacy could yield further savings, but medical-claim trends warrant monitoring.
Ending Benefits staff said they will return next month with more detailed utilization and savings figures and that they expect potential additional prescription-cost reductions if negotiations with a manufacturer are finalized.
