MEDCO Health Solutions, Inc continues to be the preferred Pharmacy Benefit Management Company with the NLAHCC and has joined to develop the NLA RX program. By Medco’s own account, more than 6 million union members and their families, 25 percent of the company’s business, are covered by one of the company’s prescription plans. Medco has contracts covering over 7,700 union members, 5,100 with the United Steelworkers.

The Medco Health Solutions contract with the NLAHCC offers a broad range of PBM services. The master agreement with the NLA was renegotiated in July 2005 after an RFP process and has a number of features which will benefit both Coalitions and their funds.

• Negotiated transparency in pricing
• Full disclosure of all PBM revenue sources
• Audit provisions, including selection of auditor
• “Most favored nations” pricing provision
• Thresholds for renegotiating contract pricing provisions
• Enhance working relationship to develop and monitor the relationship and program

Funds have shown substantial savings when participating in the NLA RX program. One Midwestern fund saw a reduction in PPI utilization by 200 per month, resulting in a savings of $40,000 per month or a potential $480, 000 per year. Medco’s services related to mail order benefits, specialty pharmacy, formulary consultation and over the counter durgs (OTC) have resulted in reduced drug trend. While using the master contract, funds retain autonomy in their plan design.

An analysis of the RFP process conducted for the PBM is available by contacting the NLAHCC.

Andrew Benoit
National Account Executive
30 Tanners Brook Road
Chester, NJ 07930

Phone: