County Executive Leopold Announces Renegotiation of Prescription Drug Plan Contract to Save $2.5 Million
Annapolis (December 3, 2010) — County Executive John R. Leopold today announced that changes to the current prescription drug contract for County employees and retirees will save taxpayers $2.5 million over the next two years.
“This Administration is committed to identifying cost savings and using shrewd negotiating tactics to decrease spending,” County Executive Leopold said. “Employee healthcare costs are one of the driving forces in rising costs to government. I am pleased that our team has been able to negotiate better deals with regard to our health plans and our prescription drug plan. This is in addition to the $15 million savings that has been realized over the last 3 years as result of new health care contracts negotiated during my first term.”
The new agreement with CVS Caremark covers approximately 17,257 employees, retirees and their dependents and will continue through December 31, 2012. The savings come in the form of lower rates for services and products compared to previous contracts. The plan design and copayments for the participants will not change. In 2009, the County spent $21.5 million on prescription drug coverage for employees.