No Change In Benefits, Costs to Current and Retired State Employees
Governor Donald L. Carcieri's Fiscal Fitness Program today announced that the state will begin saving over $800,000 per year by changing to a less costly pharmacy benefit network for current and former state employees. In filling prescriptions through Blue Cross's National Preferred Network, state employees will have access to the same prescription drug benefits at the same price, while Rhode Island taxpayers save nearly $1 million per year.
"This is exactly the kind of thing that Fiscal Fitness is designed to do," Governor Carcieri said. "Fiscal Fitness has found a way to deliver the same prescription drug benefits to state employees at a greatly reduced cost. Any time we can figure out how to save nearly $1 million per year without reducing benefits or services, it's a win for everyone involved."
"Like every other state in the nation, Rhode Island is experiencing a fiscal crisis. State government will be faced with an operating deficit of at least $150 million in the coming fiscal year. In an effort to avoid placing the entire burden of that deficit on the backs of Rhode Island taxpayers, the Fiscal Fitness Program is working to identify ways to run state government more efficiently and effectively. A million dollars in savings is a million dollars in taxes we won't have to raise or services we won't have to cut," Carcieri concluded.
Beginning November 1st, current and former state employees will fill their prescriptions through Blue Cross's National Preferred (Pharmacy) Network, which includes retailers such as CVS and Brooke's pharmacies, as well as many independent pharmacies. A demographic study shows that, on average, every state employee lives within 3.5 miles of a participating pharmacy.
Earlier this year, the Fiscal Fitness Program - formerly known at the Big Audit - achieved $600,000 in savings for state government by working with Blue Cross to reduce the cost of many of the prescription drugs being purchased by the state. To date, the Fiscal Fitness Program has identified a total of over $1.4 million in savings from the state's prescription drug benefit plan.