Two for Two: Two Simple Strategies to Save our City $2M

Two specific strategies. Two million dollars of savings opportunity.

The City of Amarillo is once again out to bid for Third-Party Administration (TPA) and Pharmacy Benefit Management (PBM) services after rescinding a previously awarded RFP to Aetna and CVS late last year. 

As part of these RFPs, the City has published a little bit of deidentified claims data for both medical and pharmacy claims.  With that data, we are able to identify certain areas of opportunity for improvement, and cost reduction.

Two for Two:  We have identified $2M of savings in two specific areas in the City’s claims, where specific tactics and strategies can be implemented to save this money.  That’s great news!  But it gets even better.

Of this $2M in plan spend (claims) we’ve identified, almost $350,000 of it came directly out of the pockets of City employees and their families.  So, eliminating this $2M would also return $350,000 back into the pockets of hard-working Amarilloans.  That is significant.

These two strategies are also what we call “Low-disruption”, meaning they would not disrupt the employee’s care they are receiving.  The City would not have to wait until “open-enrollment” to engage in these strategies either.  They could engage immediately.

So what is stopping them?  We have offered our services to the City of Amarillo multiple times in the past, and the offer still stands today.  We have the data. We have the solutions. This is an opportunity for our City to be a leading example. Is anyone at City Hall listening?