City of Chattanooga’s Employee Pharmacy Profiled in “Drug Benefit News”

The January 16th issue of Drug Benefit News profiled the unique way the City of Chattanooga is decreasing drug costs. The article comes exactly one month after the City opened a pharmacy to serve employees and dependents on the group health plan. The full-service pharmacy, opened on the same premises as their wellness clinic is forecast to save the City and its employees an estimated $8.5 million dollars in the first five years.

In the article, Dan Doebler, President of the On-Site Rx provides a specific examples of the savings the City and its member are now enjoying. The pricing, quoted on December 16th, 2008 illustrates the substantial benefits of simvastatin, the generic version of Zocor. The City of Chattanooga’s pharmacy was able to obtain simvastatin at a 99 percent discount from the Average Wholesale Price (AWP). That means a 30-day supply of simvastatin is available at $1.46, providing a competitive advantage to even the $4 generic programs touted by the likes of Walmart.

Doebler goes on to note in the article, that although On-Site Rx has targeted on employers with over 1,000 employees in one location, they have garnered interest from smaller employees. Those with 1,000 employees in one location can usually offset all operations costs in the first year. Those under 1,000 employees may just take a little longer to recoup their investment.

Based in Gainesville, GA, On-Site Rx, is a sister company to The Benefit Advocate, also based in Gainesville, GA. On-Site Rx was established in 2008 to promote and service the acquisition based pharmacy model for self-funded employers desiring pharmacy solutions on their campuses.