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Council agrees to remove Walgreens and Rite-Aid from employee drug network to trim Aetna increase
Summary
Facing a 7% Aetna rate increase for FY2018-19, Council accepted staff and consultant recommendations to remove Walgreens and Rite-Aid from the prescription network, a change projected to save about $12,000 next year.
City Manager Frank Frazier and benefits consultant Phil Burnette briefed Council on the city’s employee health plan and recent claims trends. Mr. Burnette said the negotiated FY18-19 rate increase with Aetna was 7% and presented two cost-control options: raise the plan deductible from $1,250 to $1,500 or remove Walgreens and Rite-Aid from the prescription provider network.
After reviewing claims history and demographic details (Mr. Burnette noted an average employee age of 42), Council agreed to remove Walgreens and Rite-Aid from the prescription list; staff estimated the change would save about $12,000 in the coming year. Council asked for additional claims detail where permissible but was cautioned about HIPAA limitations when seeking very granular information.
Council also discussed longer-term strategies for benefits and employee health outreach, including the upcoming health fair; staff will bring any required plan changes forward as part of the final budget and plan documents.
