MedImpact Wins Contract to Serve as Innovative PBM Partner to University of Michigan
SAN DIEGO, Calif. – July 23, 2012 – MedImpact Healthcare Systems, Inc. has won a 39-month contract to provide pharmacy benefit management (PBM) services to the University of Michigan's Prescription Drug Plan (U-M drug plan). The University of Michigan plan provides outpatient prescription drug coverage for 95,000 faculty, staff, benefit-eligible graduate students, retirees, and their dependents enrolled in a U-M medical plan. Service delivery begins October 1, 2012.
"By coordinating administration of our drug plan with a PBM, the University saves money on its net drug plan costs, which helps control costs for the U-M drug plan members," says Keith Bruhnsen, University of Michigan Benefits Office Assistant Director and Drug Plan Manager. "The University estimates it will save $13 million in drug expenditures over the term of the contract."
U-M's prescription drug plan has consistently outperformed the national average, saving nearly $72 million since the University implemented the current self-insured plan model in 2003, according to the plan's 2011 annual report. "We plan to work with MedImpact to continue our cost savings by identifying innovative programs and partnering for implementation," Bruhnsen says.
"MedImpact's retail pharmacy management strategy for the University of Michigan leverages the University's 340B Federal Drug Program, group purchasing organization (GPO) pricing, and the use of the U-M in-house pharmacies to ensure prescriptions are dispensed by pharmacies largely located in the State of Michigan," said Greg Watanabe, MedImpact president. "The University's insight and forward-thinking approach to pharmacy channel management reduces costs and delivers added economic value to the University. MedImpact's independence from pharmacy ownership makes it uniquely qualified to execute this strategy," said Watanabe.
About the University of Michigan
The University of Michigan is a global leader in health, law and public policy, the arts and humanities, science and technology, sustainability and many other academic disciplines. The university's main campus in Ann Arbor, Mich. has 19 schools and colleges and an enrollment of approximately 43,000 students. Annual research volume at the University of Michigan is more than $1.2 billion. For more information, visit www.umich.edu.
About MedImpact Healthcare Systems, Inc.
MedImpact Healthcare Systems, Inc., is the nation's largest full-service PBM that derives revenue by managing the drug benefit, not from dispensing drugs. We use information technology and human capital to improve the practice of managed care pharmacy. MedImpact partners with the nation's finest health plans, hospitals and employers to provide pharmacy benefit management services to more than 35 million members.
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