The Delaware State Employee Benefits Committee approved a pharmacy benefit management agreement with CVS Health that could save $200 million over three years.
The contract with CVS Health is estimated to provide pricing guarantee improvements of 21.8 percent compared to the current contract with Express Scripts.
In 2021, the prescription drug cost increase is expected to continue to outpace the Consumer Price Index (CPI), driven mostly by higher costs for specialty drugs.
The decision made by the SEBC addresses cost issues while maintaining the availability of prescription benefits for the State of Delaware Group Health Plan members.
“Through aggressive contract and plan management, the SEBC has been able to avoid health plan premium increases for the State and plan participants for four straight years, despite health care costs increasing nationally at more than 5 percent annually,” said Saundra Ross Johnson, secretary of the Delaware Department of Human Resources and State Employee Benefits Committee co-chair. “This agreement with CVS Health will continue to provide our employees with a comprehensive pharmacy benefit.”
The State Group Health Plan will transition to CVS Health for active employees and non-Medicare retirees on July 1, 2021. Medicare retirees will move over to CVS on January 1, 2022.