Page 39 - Bird RFP Response_Burnham Benefits

Burnham Case Study

PBM Solutions

Burnham Pharmacy Budget Management (PBM) Arm

Reduces Client’s Pharmacy Benefits Costs by 31%

Client Profile Challenge

Industry: Medical Lab  A combination of industry competition and cultural factors made rich employee
Equipment benefits essential to this self-funded client.
Employees: 155  Like all employers, the organization faced the challenge of balancing ever growing
health insurance costs with the costs of benefits offered to employees.
Locations:  As a self funded employer, the client was engaged in ongoing efforts to identify
Headquartered in efficiencies and cost improvement with minimal impact to employee benefits —
Torrance, CA with a mission of paramount importance for their organization.
Sales Force
 The most common strategies for managing health care cost increases via plan design
throughout US
changes and employee contribution increases were not feasible in this case.
Ownership: Privately
Held Solution
 Determining that a strategic change in vendors could reduce pharmacy benefits costs,
Business Founded:
1983 Burnham marketed the client’s PBM with several vendors, including Burnham’s “PBM
arm,” 360 Rx Solutions.
 The client’s PBM at that time was CVS. 360 Rx Solution’s preferred pricing (leveraging
800,000 members) with CVS and OptumRx allowed Burnham to project savings of 31%
of the client’s current pharmacy benefits costs while staying with CVS.
 360 Rx Solutions’ proactive cultivation of transparency gave the client the ability to
fully see and understand all PBM costs.
Results

 Greater transparency gave the client significantly more understanding and control
over their pharmacy benefits costs.
 The client realized a projected $119K in savings on their pharmacy benefits costs, a
significant cost savings on prescription drug spend in their health plans.
 Included in the projected $119K decrease was a rebate increase of almost $64K .
 Because the client was able to continue using CVS with no change in copays,
the employee transition was virtually seamless.
 The switch to 360 Rx Solutions included a partnership with OneRx, an app providing
employee education and tools to find the most beneficial and cost-effective
prescription drugs available to them.

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