What has the commonwealth done to save money without changing benefits?
The commonwealth continually monitors programs looking for cost-saving alternatives. The following is a list of just some of the key initiatives that have occurred over the last four years: • Competitively bid the prescription drug program to select the most cost-effective prescription benefits manager (7/1/05). Estimated Annual Savings $29,000,000 • In 2005, the PEBTF required all medical plans to submit proposals that would provide cost savings without changing benefits resulting in lower administrative costs and increased clinical programs for the retirees. Estimated Annual Savings $3,000,000 • In 2006, the commonwealth elected to participate in the Medicare Part D subsidy program in which the commonwealth was reimbursed for a percentage (about 21%) of prescription expenses in return for continuing to offer an employer-sponsored prescription program that provides a better benefit then Medicare Part D. (2006) Estimated Annual Savings $41,000,000 • Selected a Durable Medical Equipment
