The Texas A&M University System is expecting to save millions with a new contract for pharmacy services for its employees.
System Chancellor John Sharp announced this week they'll save $6.5 million in the first year alone after contract renewal negotiations with Medco Health Solutions.
Medco provides pharmacy services for 40,000 Texas A&M System employees, retirees and their dependents.
We're told the savings will not adversely impact customers using the program.
The contract goes into effect September 1st.
Texas A&M System Press Release below:
COLLEGE STATION, April 3, 2012 – John Sharp, chancellor of The Texas A&M University System, today announced that the A&M System has completed negotiations for a renewal contract with Medco Health Solutions Inc., which will be effective Sept. 1.
“In our continued quest to find the best and most efficient ways to do business, we have found we will save $6.5 million in the first year with the improved contract terms with Medco,” said Sharp. “That savings, without loss in the quality of service provided to our employees and retirees, is remarkable. I know we can find other areas within the A&M System to find similar cost savings to the taxpayers of Texas.”
Medco is a pharmacy benefit management company that provides services including network-pharmacy claims processing, mail-order pharmacy services, specialty drug benefit management, drug-utilization review, formulary management, and medical and drug data analysis services. Medco currently provides these services for the 40,000 Texas A&M System employees, retirees and their dependents that are enrolled in the self-insured employee group health plan.
About the A&M System
The A&M System is one of the largest systems of higher education in the nation, with a budget of $3.3 billion. Through a statewide network of 11 universities, seven state agencies and a comprehensive health science center, the A&M System educates more than 120,000 students and makes more than 22 million additional educational contacts through service and outreach programs each year. Externally funded research expenditures exceed $780 million and help drive the state’s economy.