St. Mary’s School

This partnership has been one of the best decisions we’ve made. SmithRx not only helped us with immediate cost savings but gave us the tools we need to manage our pharmacy benefits in a way that supports our staff and fits within our budget.

- Kaelynn Welburn, Director of Human Resources, St. Mary’s School

St. Mary’s School, a small, college-prep institution nestled in southern Oregon, faced a common but concerning issue: rapidly increasing prescription drug costs that threatened to undermine employees’ health coverage and access to vital care. With a nearly 20% increase in healthcare costs on a high-deductible plan looming in the near future, they needed a way to maintain their benefits without overwhelming their budget—and quickly.

The Problem: Escalating Prescription Drug Costs

Legacy PBM models offered few solutions, with opaque pricing and high administrative fees. St. Mary’s was left with limited visibility into pharmacy spend, and even less control over it. But like many employers, the school wanted to keep staff benefits generous, despite the surging pharmacy fees making their health plan unsustainable. 

With the help of their dedicated broker team at Propel Insurance, they began looking for a new PBM solution that could deliver real value. That search found them a partner in SmithRx, where cost transparency and long-term plan viability are priority number one.

The Solution: A Transparent, Flexible PBM Model

The transition to a transparent, cost-based approach aligned perfectly with the school’s goals. SmithRx was exactly what they were looking for, offering a model that was easy to understand and focused on real cost savings.

Because SmithRx operates on a pass-through pricing model, meaning that all manufacturer rebates and discounts go directly to the client, St. Mary’s was able to see exactly where their pharmacy dollars were going. This level of transparency helped the school regain control over their prescription drug costs while giving employees access to high-quality medications.

The flexibility of SmithRx’s plan allowed St. Mary’s to make better choices for their staff. 

“It gives us the ability to find the most cost-effective prescription for our employees,” said Kaelynn Welburn, Director of Human Resources at St. Mary’s, “which in turn saves them money, saves us money, and allows us to continue to offer a generous benefit plan.”

‍The Results: 60% Cost Reduction and $100,000 in Rx Savings

By the first quarter of 2024, St. Mary’s saw remarkable results from their partnership with SmithRx. The school achieved a 60% reduction in overall plan costs for prescription drugs, along with a 43% decrease in net per-member per-month (PMPM) costs. This translated into more than $100,000 in Rx savings alone, representing a 14x return on investment in their fixed Rx costs.

“Our per-member per-month costs dropped dramatically,” said Kaelynn. “We saw immediate savings, and the transparency SmithRx provided made it easy for us to track those savings in real-time.”

This significant financial relief allowed St. Mary’s to maintain and even improve its overall benefits package, which was critical in keeping employee morale high. They saw reductions in pharmacy costs that far exceeded expectations, and their employees would be better served, knowing that they had access to the prescriptions they needed at a lower cost.

The Impact: Improved Employee Satisfaction and Morale

One of the most important outcomes of St. Mary’s partnership with SmithRx was the positive impact it had on employee satisfaction and morale. With the reduction in out-of-pocket expenses for prescription drugs, employees felt a greater sense of security regarding their healthcare benefits.

The transparent PBM model not only provided financial savings but also fostered trust between the school administration and its employees. The seamless transition to SmithRx’s platform, facilitated by Propel, further contributed to a smooth experience for all involved.

“SmithRx made the process easy for us,” Kaelynn recalled. “They gave us everything we needed for open enrollment, laid out clear steps for the transition, and supported both the administration and our staff every step of the way.”

A Sustainable Future for St. Mary’s School

For employers like St. Mary’s School, the partnership with SmithRx has proven that it’s possible to manage healthcare costs while maintaining—and even improving—the quality of benefits they provide to their staff.

Looking ahead, St. Mary’s School is now well-positioned to manage its healthcare costs sustainably, thanks to its partnership with SmithRx. The school’s leadership team is confident that the savings they’ve achieved will continue to benefit both the institution and its employees for years to come.

“This partnership has been one of the best decisions we’ve made,” said Kaelynn. “SmithRx not only helped us with immediate cost savings but gave us the tools we need to manage our pharmacy benefits in a way that supports our staff and fits within our budget.”

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