City of Grand Rapids Achieves Remarkable Health Plan Cost Savings Through Fiduciary PBM Partnership

In a remarkable demonstration of effective pharmacy benefits management, the City of Grand Rapids has achieved substantial cost reductions through its partnership with DisclosedRx, delivering significant savings for both the municipality and its employees.

Key Performance Highlights

• 37% reduction in gross claim spend - representing substantial taxpayer savings
• 26% decrease in member costs despite already low copays
• $1.3 million in net plan savings within the first eight months
• $93,867 in direct member savings benefiting working-class families
• Projected annual savings of $2 million for the city
• Expected $150,000 in annual member savings

Breaking Down the Success

What makes these results particularly impressive is the context: The City of Grand Rapids already had a rich benefits package with remarkably low copays of just $4-5. Achieving additional savings with such competitive baseline costs showcases the impact of Fiduciary partnership, Full Disclosure and pass-through pricing models.

The implementation of DisclosedRx’s Agile Channel Management program has been crucial to this success. By leveraging alternative funding and sourcing options for brand and specialty medications, the program reduced expected spending from $4.3 million to just under $3 million in the initial period.

Impact on Working Families

For the working-class families employed by the City of Grand Rapids, these savings have real impact. Every dollar saved through reduced prescription costs contributes meaningfully to household budgets. The member savings focus of the program ensures that benefits reach those who need them most.

Meeting and Exceeding Expectations

The program is not just meeting but exceeding its initial projections. With a guaranteed savings target of $1.2 million, actual results are tracking toward $2 million in annual savings, demonstrating the power of a Fiduciary PBM model that is contractually bound to act in the best interests of its clients.

The success of this program serves as a compelling example of how municipalities can significantly reduce health plan costs while maintaining or improving benefits for their employees through partnership with DisclosedRx, The Fiduciary and Fully Disclosed PBM?.

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