TLC Property Management

How TLC Properties Slashed Pharmacy Costs and Boosted Employee Morale with The Tedrick Group and SmithRx

In today’s fast-evolving realm of healthcare, organizations are constantly seeking ways to provide better benefits to their employees while managing costs efficiently. TLC Properties, a leader in providing multi-family living opportunities, was one such organization. Thanks to switching to SmithRx’s cost-based approach to pharmacy spend per The Tedrick Group’s recommendation, they achieved significant reductions in prescription drug costs and significantly improved employee satisfaction. 

Problem: Spiraling Pharmacy Benefits Costs and Lack of PBM Flexibility Put TLC's Benefits Sustainability at Risk

TLC Properties was grappling with rising pharmacy benefits costs, a bad situation made even worse by the lack of transparency and flexibility in traditional PBM models. The Tedrick Group, a full service commercial insurance agency, took notice of TLC's predicament and formed a business relationship established on trust.

"We saw that their fully insured spend was on a bad trajectory with 30 plus renewal increases back to back,” said Nate Mast, Practice Leader of Employee Benefits at the Tedrick Group. 

There was a clear and urgent need for a solution that could mitigate these escalating costs without undermining employee satisfaction.

Solution: Tailored Pharmacy Benefits Plan by SmithRx Enhances Flexibility and Employee Experience

The Tedrick Group introduced TLC Properties to SmithRx, a pass-through PBM that could lower TLC’s spend by focusing on overall cost rather than the seemingly large discounts of their previous PBM. After reviewing the opportunity, SmithRx offered a customized pharmacy benefits solution designed specifically for TLC's needs, and complete support throughout the transition. 

While shifting from a fully-insured to self-funded health plan model can be daunting, TLC was set up for success as part of the ParetoHealth captive. The ParetoHealth team helps small to medium sized businesses take control and start provide healthcare solutions while curtailing costs.

Chris Bos, Chief Human Resource Officer at TLC Properties, praised SmithRx's commitment to a seamless process: "We decided to choose SmithRx because they were dedicated to making the process seamless for our employees. They gave us an outline, the list of steps, they gave us open enrollment material, and lots of other things that we could expect along the way, not only for us as an employer, but for our employees."

This strategic approach was grounded in SmithRx's values of transparency, flexibility, and partnership, aimed squarely at addressing the challenges faced by TLC Property Management.

Results: Dramatic Cost Reductions and Enhanced Employee Satisfaction

The collaboration between SmithRx, The Tedrick Group, and TLC Properties led to extraordinary outcomes. In the first year alone, TLC’s per member per month (PMPM) cost dropped from $124 to $88. After applying rebates, this figure was further reduced to $43 per month—a staggering 65% decrease in pharmacy costs.

The results for TLC after partnering with SmithRx have been out of this world. We went from an expense of $124 per member per month, down to $88 per member per month, and then when you factor in the rebate, we're actually down to $43 per month. 

- Nate Mast, Practice Leader of Employee Benefits, The Tedrick Group

These achievements not only demonstrated the financial advantages of the partnership but also reflected the improved employee satisfaction resulting from a more transparent and manageable pharmacy benefits experience.

Bos summarized the impact of the partnership: "For TLC, partnering with SmithRx was certainly the right decision. We're seeing the results in the data. We're seeing the results in our interactions with employees. For me, it's a no-brainer."

The partnership between SmithRx and TLC Properties demonstrates  the significant impact of innovative pharmacy benefits management strategies. By focusing on overall costs and the needs of both the employer and employees, SmithRx was able to deliver a solution that drastically reduced costs while enhancing the overall benefits experience.