Labor Union Idea Saves New Jersey $1.6 Billion In Prescription Drugs Costs
By Doug Cunningham
A union idea to change how New Jersey bids for employee benefits will save $1.6 billion over the next three years. Union representatives came up with the new online bidding process – an online auction where drug benefit providers bid against each other.
The result is a three year contract with OptumRx that saves the $1.6 billion in costs without changing employee benefits. This new system allowed New Jersey to issue a common contract that was then bid on by the providers.
The union idea, initially resisted by the state, is now saving money for both union state workers and New Jersey taxpayers. NJEA President Wendell Steinhauer says his union is proud to have taken the lead on this breakthrough approach to help union members and taxpayers alike.“
The unions say this technology created a competitive market for prescription medicines that didn’t exist before in New Jersey.