Case Study
Compassion International
Minimizing Employee Costs While Maximizing
Employee Savings

I. BACKGROUND

Compassion International, a child-advocacy ministry with 2,600 active members on its health benefit plan, wanted to lower prescription drug costs for its employees. Adhering to its Christian Alliance for Benefits program principles, Compassion International’s goal was to provide “excellent, sustainable, competitive employee benefit programs that exemplify quality, stewardship, integrity and unity.” Compassion International’s benefits team decided to review pharmacy benefit management (PBM) options that included a fully transparent, 100 percent pass-through pricing model; a high degree of collaboration; and effective recommendations that made clinical and financial sense to the ministry and its membership. In addition, the ministry sought a PBM that would guide its employees to use the most clinically effective, lowest-net-cost medications, and act as an ambassador to its employees. By partnering with a PBM that could deliver these key elements and manage its plan at both a high and detailed level, Compassion International could spend more time focusing on its business and its employees and less time managing its prescription drug program.

II. ACTION

Compassion International worked with Enterprise Risk Strategies (ERS) consultants to develop a strategy specific to its goals and to solicit proposals from PBMs. Given its objective to provide employees with the best pharmacy plan possible, the following employee-centered services were vital:

Upon receiving this opportunity, Navitus was confident that its transparent, full pass-through business model could help Compassion International take control of its pharmacy benefit program and provide greater benefit to its employees. As a result of an extensive Request for Proposal (RFP) process, Compassion International selected Navitus as its PBM partner.

III. RESULTS

Using the benefit management approach co-developed with Navitus and Enterprise Risk Strategies, Compassion International achieved extraordinary results for its employees. Cost savings to both the plan and its membership have been significant—without compromising patient care. Compassion International experienced double-digit cost decreases at a time when most employers experienced double-digit cost increases. Gross cost and plan-paid amounts decreased substantially, while Compassion International’s member population remained consistent. In its first 12 months with Navitus, Compassion International experienced significant results, as illustrated below.

Compassion International plan and member cost savings with Navitus:

% Aggregate Change from Prior PBM

Net Total Cost PMPM*

-23%

Net Plan Cost PMPM*

-26%

*Net of rebates

Navitus’ focus on evidence-based formulary development, objective clinical review, and lowest net cost resulted in smarter drug purchasing and a significant reduction in Compassion International’s overall net costs. Working with Navitus, Compassion International not only received improved client service and flexible options designed to meet its specific needs, but also improved member service and reduced pharmacy costs, allowing employees’ overall health benefit contribution to remain unchanged.

A further breakdown of Compassion International’s changes to drug cost and utilization indicate that:

     »   The total cost for the program decreased by 15%

     »   The plan cost for the program decreased by 17%

     »   The day supply per member per month (PMPM) decreased by 29%.

The flexibility and ease of making formulary changes that promote cost savings and that make sense for Compassion International were a welcome change. Compassion International trusts Navitus to fully align with its interests and is comfortable turning its pharmacy benefit program over to Navitus for appropriate, results-driven management.

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