Colorado hopes to save millions by changing how state’s employee health plan pays for prescription drugs

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Colorado hopes to save millions by changing how state’s employee health plan pays for prescription drugs
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Colorado will be the fourth state to require pharmacy benefit managers who want the contract for state employees to compete to offer the lowest costs on prescription drugs

If other insurance plans like what they see, they could join the state’s pharmacy benefit manager contract when it comes up for bidding again in a few years.

“Having this come out as a way to not only contain costs, but reduce costs, that’s a win not only for employees but for the state,” he said. “You’re getting different pricing, different contract terms, different formularies,” which are the framework to steering employees toward certain drugs and away from others, he said.

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