340B drug pricing program integration reaps vast healthcare benefits

A large Native American casino resort located in Southwestern Louisiana faced healthcare barriers for their employees due to limited geographic access.

As a federally recognized Indian tribe, the Native American casino resort qualified as a safety net provider – known as a covered entity – under the government-subsidized 340B Drug Pricing Program. As the preferred onsite pharmacy partner, Premise Health was contracted to help improve and extend care for their diverse population by expanding the 340B program. By doing so, the resort was able to maximize prescription benefits and create significant opportunities for cost savings.

While the resort provided pharmacy services for employees and their families, they also offered an onsite wellness center that generated significant healthcare savings as well. Pharmacists and providers were able to focus on appropriate education and adherence by getting to know each individual member, their family, and their needs. Premise Health providers were able to obtain some of the lowest drug costs in the country through the 340B program largely attributed to customizing care for each members’ needs.

340B Drug Pricing Program

The 340B Drug Pricing Program requires drug manufacturers to provide outpatient drugs to covered entities at significantly reduced prices. The program is available to several types of safety net providers, and it allows them to stretch their limited federal resources and offer a comprehensive set of services.1 The 340B program has saved the casino resort through both generic and brand prescriptions.

Prescription Savings*

Generic…..$17 per generic prescription (with a worksite pharmacy)
Brand……..$111.50 per brand prescription

In 2017 alone, the 340B program remitted more than $571,000 back to the resort. These pharmacy savings allowed them to expand programs that continue to provide quality and affordable care to employees.

1 Health Resources and Services Administration. 340B drug pricing program and pharmacy affairs. http://www.hrsa.gov/opa/index.html. Accessed April 16, 2014.
*Based on 50,000 prescriptions

Over four years, the onsite program generated more than $6.4 million in total net savings, and:

  • Per Member Per Year Savings … ↑20%
  • Productivity Savings…. ↑51%
  • Wellness Center Utilization…. ↑19%

Maximizing wellness center and pharmacy benefits.

In addition to the worksite pharmacy and 340B program benefits and cost savings, wellness center utilization and provider visits increased more than 18%. Visits to the emergency room for non-emergent conditions such as colds, sore throats, runny noses, and earaches also decreased by 36%.

In total, the resort accumulated more than $6.4 million in net savings. With the 340B Drug Pricing Program alone, this Native American casino resort amassed $836,000 in savings. When combined with the onsite wellness center, they saw $1.5 million in savings.

Through improved access to high-quality care, increased utilization of onsite healthcare resources, and 340B Drug Pricing Program support, the casino resort has been able to become a healthcare gateway for employees and their families, while reducing overall healthcare spend for the organization.

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