Agenda Item # 2
Columbus Consolidated Government
Council Meeting
September 8, 2009
Agenda Report # 420
TO: Mayor and Council
SUBJECT: NLC Prescription Drug Card
INITIATED: Human Resources Department
Recommendation: Consider a resolution to authorize participation by the
Columbus Consolidated Government in the NLC (CVS/Caremark) discount
prescription drug card program. If approved by Council the recommended launch
date is October 1, 2009.
Background: At the request of Council, HR obtained information from NLC on
their discount drug card program presenting this information to Council on June
9, 2009. Highlights of that report include:
Program administered by CVS Caremark at no cost to CCG or citizen users.
94 cities in 32 states now participating in program; 4 in Georgia.
NLC receives commission on sales; CVS profits from wholesale/retail spreads and
rebates.
There are 53 participating pharmacies in Columbus.
There are many other similar programs; Google search had 2.5 million hits.
CVS claims 20 % savings while some programs claim savings of up to 75%.
Walmart, Target and others offer $4 generics without a card.
All of these programs are marketing efforts available to anyone.
There are similar sponsored and discount card programs for groceries and credit
cards.
Although programs may benefit consumers they also benefit sponsoring
organizations.
If we offer NLC program, other card programs may ask for the same opportunity.
Could be perceived as allowing use of CCG name for a private marketing campaign.
Reported on how program was working at other Georgia cities of Riverdale,
Norcross, Waycross and Lovejoy. Each city reported little admin effort on
their part and no problems.
Offered 3 options for CCG participation for Council consideration from minimal
to extensive promotion.
Discussion included advertising all 53 participating pharmacies on CCGTV and
distributing cards from the fire stations.
Analysis: The NLC prescription drug card may benefit some citizens. We have
heard reports that the NLC card may not always be beneficial to the user. It
is the responsibility of citizens using the card to ask their pharmacist if
using the card will save them money on their prescription.
Legal: No known legal issues.
Financial Considerations: There is no cost to the City for participating in
this program.
Recommendation/Actions: No recommendation, direction requested from Council.
Please see email and attachments below from City of Montgomery.
----- Original Message -----
From: Marc Shapiro [SHAPIRO@nlc.org]
Sent: 09/03/2009 05:05 PM
To: Tom Barron
Subject: RE: NLC Drug Card Kickoff
Tom:
I appreciate your interest in light of the recent article about the NLC
Prescription Discount Card Program in the Montgomery (Alabama) Advertiser.
I had several conversations over the past week with city officials in
Montgomery, including the risk manager, as well as the reporter from the
Montgomery Advertiser, prior to the publication of the article and provided
detailed information on the savings to residents through the NLC Prescription
Discount Card Program.
NLC stands firmly behind the savings claims of the Prescription Discount Card
program and the value that the program brings to participating cities and their
residents. Nearly 250 cities nationwide are participating in the program
to-date and the average savings to residents has been greater than 20 percent.
In addition, comments about the program from participating cities have all been
very positive.
I also want to reinforce the point that the program operates on what is called
a "lower than" price structure so that residents always receive the lowest
price available, including those cases where a pharmacy's sale price may be
lower than the price with the discount card.
I have attached a ?Frequently Asked Questions? about the NLC program that
addresses the issues raised in the article as well as the latest (July) report
that provides utilization and savings data for participating cities for the
month as well as a cumulative total for each city. The average savings
nationally exceeds 20 percent.
I hope this is helpful.
I will be away from the office until Tuesday of next week, but please don't
hesitate to call me on my cell phone if you have any questions or if I can
provide any additional information.
Marc Shapiro
Program Manager, Enterprise Programs
National League of Cities
P: 202.626.3019
P: 240.354.7056 (cell)
City analysis finds drug program savings minimal
By Jill Nolin ? September 1, 2009
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The city of Montgomery's more extensive analysis of a proposed discount drug
program still showed that the average savings do not add up to the advertised
20 percent. But the National League of Cities, which sponsors the program, said
no other city has made such a claim.
A resolution that would sign the city of Montgomery up for the program is on
the agenda for tonight's City Council meeting.
The program, which is administered for the NLC by CVS/Caremark, is geared
toward the uninsured and the underinsured, and the issued card would have the
city seal printed on it.
The city's risk manager, John Carnell, said Monday that a comparative analysis
performed on the 25 most popular prescriptions used by city employees and their
families shows the program did not come close to yielding a 20 percent discount.
In some cases, the "discounted price" with the card was higher than the average
over-the-counter cost. Overall, the discount card price for brand names was 4
percent cheaper than the average market price, known as the usual and customary
cost, and almost 12 percent higher for generic drugs.
Overall, the discount price for all the prescriptions analyzed in the city's
study was less than 1 percent lower than the usual and customary price.
"A savings is a savings," said City Councilman Willie Cook, who proposed the
city adopt the program. "My position stands that it would still be a good
benefit for citizens."
The study also found that, at best, the savings available through the program
were minimal when compared with three other large corporate chains and one
small independent pharmacy in Montgomery, according to Carnell.
National League of Cities spokesman Gregory Minchak said the findings are in
some ways irrelevant to the purpose of the program because the customer should
not be charged the higher rate when the program's price is not the lowest.
"If you present the card, you're supposed to get the cheapest price," Minchak
said.
But some Montgomery pharmacists said their systems are not able to discern when
the discounted price actually is higher than the average consumer price,
meaning an uninsured cardholder actually could pay more with the card.
"Our system, it's not one of those refined registers. It's just a regular old'
cash register," said Hamp Russell, who has been a pharmacist for 35 years at
City Drugs on Dexter Avenue.
City Drugs, a small independent pharmacy included in the city's analysis,
actually came out to be the cheapest provider, beating out Wal-Mart, Winn-Dixie
and Walgreen?s in the study.
City Drugs proved to be 5 percent cheaper on brand names and 21 percent cheaper
on generics than the CVS/Caremark discount.
Russell said that the majority of his customers have some form of insurance. As
of 2 p.m. Monday, Russell said he had filled about 300 prescriptions and only
about 30 of them were not covered by insurance.
This is how Wal-Mart, Winn-Dixie and Walgreen?s fared when compared to the
CVS/Caremark program:
Wal-Mart was 3 percent higher for brand names and 2 percent higher for
generics; Winn-Dixie was 1 percent higher for brand names and 7 percent cheaper
for generics; Walgreen?s was 2 percent higher for brand names and .02 percent
higher for generics.
Carnell performed the analysis at Mayor Todd Stranger?s request. Minchak said
NLC partnered with CVS
/Caremark in the fall and that the 20 percent advertised savings figure is
based on the national average.
When asked about the city's first study, which reaped a similar outcome,
Minchak said, "I would just point to the results that we've gotten so far.
We've heard nothing but positive reviews of the program."
Marc Shapiro, program manager of enterprise programs for the NLC, said any
pharmacy can participate in the program and that the partnership should not be
perceived as an endorsement of CVS pharmacies over other pharmacies in the
network.
"By participating in the network, local independent pharmacies can compete on a
level playing field with the chain pharmacies, giving residents a greater
choice," Shapiro wrote in an e-mail.
City Council President Charles Jinright, who was initially against the program
because of the earlier findings, said Monday that he was more inclined now to
support the program because not supporting it would create the wrong perception.
Jinright said that while he recognized that the program probably was not as
beneficial as others believe, not offering the program to those who need help
in Montgomery would seem as though the public was being deprived of aid that is
offered elsewhere in the state. Because of that, Jinright said the program
should be available here.
"You're sending a message to five percent of the population that says, 'Yes, we
will help you if we can,' " Jinright said.
"It's not going to hurt anybody to have the card," he added.
At least 20 other cities in Alabama participate in the program -- Prattville
and Wetumpka recently signed on -- and the NLC reported that the cities have an
average to-date savings in the 20 percent range.
"It looks like, to me, that so many cities in the state are using it. It's kind
of hard for us to say 'no' when everyone else is saying 'yes,' " Jinright said
Monday.
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http://www.pluck.com/_
IveGottaComment wrote:
" ("It looks like, to me, that so many cities in the state are using it. It's
kind of hard for us to say 'no' when everyone else is saying 'yes,' " Jinright
said Monday.) "
COME ON Councilor! That type thinking goes back to what your momma taught
you...if everyone jumped off the bridge, would you. I GUESS SO. You can't say
it won't hurt anyone to have the card because our poor have been programmed to
use every handout and card they can. They will consistently present the card,
and from the facts presented by your own man, end up paying more in most cases.
Let Willie cry and whine. He'll get over it. Just because other nearby cities
blindly went into this program does not make Montgomery wrong for investigating
the company's claims and showing they are (possibly fraudulently) overstating
savings.
9/1/2009 8:43:30 AM
A RESOLUTION
NO.________
A RESOLUTION AUTHORIZING COLUMBUS CONSOLIDATED GOVERNMENT PARTICIPATION IN THE
NLC PRESCRIPTION DRUG CARD PROGRAM.
WHEREAS, the Columbus Consolidated Government is a member of the National
League of Cities; and,
WHEREAS, the National League of Cites has partnered with CVS Caremark to offer
a discount prescription drug card program to the citizens of its member cities;
and,
WHEREAS, the logo or seal of participating cities will appear on the drug card
along with those of the National League of Cities and CVS Caremark; and,
WHEREAS, there is no cost to the Columbus Consolidated Government to
participate in the program; and,
WHEREAS, the approved program will launch on October 1, 2009 with advertising
on CCGTV, press releases to the media and distribution of cards from the fire
stations and government center lobby.
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA, HEREBY RESOLVES AS FOLLOWS:
That the Columbus Consolidated Government will participate in the
NLC/CVS Caremark discount prescription drug card program.
______________________________
Introduced at a regular meeting of the Council of Columbus, Georgia, held
the _________ day of ____________, 2009 and adopted at said meeting by the
affirmative vote of _________ members of said Council.
Councilor Allen voting __________.
Councilor Anthony voting __________.
Councilor Baker voting __________.
Councilor Barnes voting __________.
Councilor Davis voting .
Councilor Henderson voting __________.
Councilor Hunter voting __________.
Councilor McDaniel voting __________.
Councilor Turner Pugh voting __________.
Councilor Woodson voting __________.
_______________________________ _____________________________
Tiny B. Washington, Clerk of Council Jim Wetherington, Mayor
Attachments