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Innovations in Cost Containment

Last year, we introduced an integrated approach to cost containment in conjunction with five of our core third-party administrator (TPA) partners.

The idea was two-fold:

  • To reduce the number of decisions required from you and your consultant
  • To make it easier to integrate high-impact cost containment programs with your TPA

The result? A turnkey platform that:

Drives cost containment program utilization

Reduces medical claims

Reduces pharmacy claims

Leverages constant, data-driven improvements

If you missed our rollout last fall, please connect with your consultant for access to a comprehensive overview. To highlight the power of the platform, here’s a quick example:

Humalog is a brand name insulin that typically costs about $700 per month (or $8,400 per year).

In 2020, Humalog’s manufacturer came out with a generic version that costs 50% less.

For captive members already part of the Pareto Health 2.0 platform:

With approximately $6 million in annual claim spend on Humalog and Novolog within all Pareto captive programs, our opportunity for savings is approximately $3 million.

Ground-breaking work takes a village. Our hope is a number of additional TPAs—and captive members—will agree to join the platform this year.

If you aren’t yet on the platform and you would like access to cost management levers typically reserved for the Fortune 500, please connect with your consultant or Pareto Health account manager.

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