University of Michigan to save $1 million over three years following switch in mail-order prescription vendor
The University of Michigan will switch its mail order pharmacy service vendor used by its employees Sept. 1, a move expected to save the institution $1 million over three years.
The service will switch from Walgreens to NoviXus.
Novi-based NoviXus Pharmacy Service is the first mail order pharmacy in the state, according campus publication The University Record.
The switch in vendors will not change coverage or co-pay amounts for employees, said Dave Reid, a senior director for communications for U-M human resources.
The move impacts U-M's 38,000 insured employees, including those at the University of Michigan Health System.
“This change brings a modest reduction in administrative fees to the university, but also a level of service that includes certified pharmacy techs working in the customer service center, shorter turnaround times for shipments and the ability for our employees to consult with a pharmacist by phone,” Reid said via email.
Mail service is offered to insured employees for 90-day supplies of medications taken regularly, such as cholesterol or blood pressure medications.
Walgreens will automatically transfer the majority of mail-order prescriptions with open valid refills to the new service on Sept. 1, U-M said.
All insured U-M employees use the same prescription service. The overall administration of U-M’s prescription drug plan will continue under informedRx/SXC, the university said in a news release.
Juliana Keeping covers general assignment and health and the environment for AnnArbor.com. Reach her at julianakeeping@annarbor.com or 734-623-2528. Follow Juliana Keeping on Twitter
Comments
Seasoned Cit
Mon, Aug 8, 2011 : 10:59 p.m.
Nice to see the UM dealing with a Michigan based firm. Wonder if they are considering having donations received at a Michigan based bank vs one in PA that has donations sent to their lock box operation in yet another state. Seems we could find people in Michigan who can open envelopes and make deposits.
Cash
Mon, Aug 8, 2011 : 8:04 p.m.
One million $ over 3 years? That'll be almost enough to pay for one police chief.
Sparty
Mon, Aug 8, 2011 : 7:08 p.m.
Oh please, here we go again with those few Nurses thinking that every nickel saved or found anywhere on campus, or in the UM budget, must belong to them or should be given to them - their job is the only one of any worth you know. The university mail in prescription plan is basically a "2 month for 3" plan -- participants pay the cost of 2 months worth of prescription co-pays and receive 3 months worth of medication. This model has been in place for many years and only the vendor has changed, so no local pharmacies will see a decrease in business. In fact, given that NoviXus is based in Michigan, this is great news for a Michigan business instead of Walgreen's which is based in IL and serviced in TX (for those of you who might be interested in the facts). I think it's terrific that UM continues to seek out cost savings, administrative efficiencies, and plan enhancements (like better customer service, pharmacy technicians, faster mailings, etc.) for their enrollees, including those few nurses who continue their whining ways. LoL.
arborani
Mon, Aug 8, 2011 : 6:38 p.m.
The University seems to do this every three or four years - the services provided to clients seem pretty much the same. I do think the name "NoviXus" is a little unfortunate; at first glance I read it as "Noxious."
bulldog01
Mon, Aug 8, 2011 : 4:24 p.m.
Really - saving that much? Now they can afford to pay the nurses more to make up for the increase the nurses will pay in health insurance. I am so relieved!!!!!
Joe Kidd
Mon, Aug 8, 2011 : 3:43 p.m.
Seems like he prescription plan changes every couple of years or so.
JanL
Mon, Aug 8, 2011 : 11:28 a.m.
My partner's employer just made a similar change with their insurance providers. For us, a $10 co-pay on prescriptions is only available through the mail order pharmacy. Filling a prescription locally would cost $40. Obviously, we will use the mail order pharmacy as much as possible. These small changes may seem like a good move for employers who want to cut costs, but on the whole, they will have a significant negative impact on the local economy. The small independent pharmacies (of which there are not many left) as well as the local chain pharmacies will certainly see a decrease in business.