Under a rate structure approved Tuesday by the board of trustees that manages the state’s health benefits trust fund, or EUTF, some workers could see the cost of prescription drugs drop by as much as 13 percent. The new rates are scheduled to take effect January 1, 2012.
The savings come after the state chose CVS Caremark as its new pharmacy benefit manager, or PBM. The contract with the previous PBM, InformedRx, was not renewed.
"It’s part of the system where our consultant is able to go to the different vendors, whether it’s the PBM or the medical side,” said George Kahoohanohano, chairman of the EUTF board.
Still, any savings realized on prescription drugs is not likely to surpass the added cost of healthcare that many government workers were forced to absorb starting July 1.
Under new two-year contracts between the Hawaii Government Employees Association and the Hawaii State Teachers Association, members of the two unions are required to pay a 50-50 split on their health insurance premiums, or ten percent more than the previous contract.
However the new 50-50 split does not apply equally to all employees across the state.
Under a separate agreement announced last month between Big Island Mayor Billy Kenoi and the HGEA, workers in that county have reverted back to a 60-40 split for health insurance premiums. That means Hawaii County’s 876 HGEA members will pay less for their healthcare than the state’s 13,000 public school teachers or the 4,107 county workers in Honolulu (2,880), Kauai (368) and Maui (859).
In announcing the supplemental deal Kenoi said it would save the Big Island $2.1 million per year by reducing the pay of HGEA workers by 4.6 percent. The labor savings are being realized through a furlough program of one day per month that is scheduled to remain in effect until June 30, 2013.
All of the other counties discontinued their furlough program under the new contract with HGEA.
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See the original article at: KHON2 Local News
