Solution in Drug Plan Management 2011 September 8, 2011
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Transcript of Solution in Drug Plan Management 2011 September 8, 2011
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Solution in Drug Plan Management 2011September 8, 2011
Basil RoweVice President, Total Rewards and Shared Services
Shoppers Drug [email protected]
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More Ways To Care, More Ways to Benefit
SDM implemented in January 2011 a new leading edge benefits plan
Formulary Solutions Chronic Care SolutionsWellness Solutions
Plan Spending
-14.7%
Enrolment in mentored and self-help programs
20%
Participation in Diabetes Management Program
40%
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The Case for Change
SDM average amount per claim was above benchmark for its corporate plan and below benchmark for its retail plans.
Benchmark
SDM Corporate
Plan
SDM Retail Plans
Year 2009
SDM wanted to group all SDM employees under one best-in-class plan
There was a desire to leverage organizational capabilities to offer value-added services
Benefit plans were inconsistent and inequitable across employee groups
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One Employer’s Reality
2010 Review Learnings
Central office employees’ plan design was not optimized
Increased genericization and a decrease in generic drug prices
would only provide temporary savings
Change was required
2009(A) 2010(F) 2011(F) 2012(F) 2013(F)
Corporate Trajectory prior to provincial reforms
2012-13 Growth: 7%
Impact of legislative changes and genericization of blockbuster drugs
2012-13 Growth: 7%
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Our Path To Success
Defining Solution Implementing
Monitoring Communicating
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Objectives and Opportunities
ObjectivesWhat are my goals?
OpportunitiesWhat are my cost drivers?
Improve the health of our employees and their families
Reduce the cost risk to the organization
Engage, empower and share accountability for better health
Integrate our benefit offering
Chronic Conditions & Rare Diseases
Open Formulary & Specialty Drugs
Lack of Coordination of Benefits
Drugs & Short and Long-Term Disability
Defining Solution
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From Ideas to Solutions – Previous PlanDefining Solution
Manage Risks
Open Formulary
Lower Cost Alternative (LCA)
Utilization management
Change Behaviours
EAP
Manage Future Costs
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From Ideas to Solutions – Current SolutionsDefining Solution
Formulary Solutions
Custom formulary managed in-house
Tiered copay
Generic leadership
Utilization management
Wellness Solutions
Health risk assessment
Mentored and self-help programs
Mental health & stress triage and referral to EAP
Personal wellness account & incentives
Chronic Care Solutions
Diabetes
Rheumatoid arthritis
Multiple sclerosis
Cancer
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Balancing the Experience of Members and EmployerImplementing
Pharmacy Expertise
GenericLeadership
P&TCommittee
L & DIncubator
PharmacyTraining
Grand-Fathering
ConsistentExperience
1-800Number
DrugLookup
Tool
Human Resources Perspective
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Engaging Members at Home, at Pharmacy, at Work
CustomizedBranding Branded
Drug Card
LaunchVideo
Town Halls
Newsletters
In-Store Handouts
Drug Lookup Tool
WellnessContest
Screensavers
Targeted Mailings
Plan Documentation
Communicating
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Engaging Members at Home, at Pharmacy, at WorkCommunicating
CUSTOMIZED BRANDING
SCREEN SAVER
BRANDED DRUG CARD
BENEFITS AT A GLANCE
WELLNESS CONTEST
NEWSLETTER
DRUG LOOK UP TOOL KIT
POSTERS
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Focusing on Outcomes for Future Improvements
Our goal is to have an integrated view of our benefits investments and to be proactive in improving our plan
Sample Scorecard Trend
Benefit Design
Average amount paid per employee
Average amount paid per claim
Average number of claim per employee
YOY growth in average $ per employee
COB % of total eligible amount
% of 90 Day fill for Maintenance Drugs
Savings from Tiered Co-Insurance
Formulary
Savings from Managed Formulary
Generic Penetration
OTC % of total amount paid
SRx % of total amount paid
Other
In-Network Usage
Monitoring
Member Experience Survey
45% of employees participated in the post-enrolment survey
Drug / Prescription Coverage ranks as #1 in importance
88% of employees find that the plan is more sustainable for the company in the
long term
Employees found communication effective – but needed more information on how to
make better use of their benefit choices
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From LCA to Generic Leadership
Defining Solution Implementing
Monitoring Communicating In-store handouts Direct mailing Newsletter Drug Lookup Tool
Grandfathering of members on non-preferred drugs
Best in classgeneric dispensingat pharmacy
Increase price differentialthrough tiers
Lower reimbursement for unique drugs with generic in therapeutic class
Monthly reporting on generic penetration and efficiency
Opportunity report Results: +8% in
generic penetration
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More Ways To Care, More Ways to Benefit
Plan Spending
Generic Penetration
Enrolment in mentored and self-help programs
Participation in Diabetes Management Program
-14.7%
+8%
20%
40%
Our 6-Month Results
Medication Review & Retroactive DUR
Expanded Specialty Disease Management
Step Therapy
Our FutureOur People
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Lessons Learned
Focus on Members Experience
Change Management Engagement Integrated
Information
Monitor Results Opportunity Analysis
Experience Survey Scorecard
AccessPharmacy Expertise
Health Care Knowledge
In-Store Feasibility
Industry Dynamics