WisconsinRx Fact Sheet

Background

In March of 2003, the WEA Trust CEO, Al Jacobs, proposed a healthcare reform package called "The New Wisconsin Idea." The four reforms in the package consist of the creation of:

1. A statewide prescription drug purchasing pool.
2. A centralized transaction system.
3. Transparency of each medical product and service.
4. Basic preventive care for each citizen, and "centers of excellence" for certain high cost procedures.

WisconsinRx is the first reform in the package to be implemented. WisconsinRx is a statewide purchasing pool, run by the private sector, designed to bring state businesses together to purchase prescription drugs in volume.

The Employer Health Care Alliance Cooperative (The Alliance), the Fond du Lac Area Businesses on Health (FABOH) and the WEA Trust (the Trust) came together to create this system of purchasing drugs called WisconsinRx.

The Process

• Twelve Pharmacy Benefit Managers (PBMs) bid to administer prescription drug claims for WisconsinRx.
• An independent consultant assisted WisconsinRx in the review of these bids.
• Five finalists were invited to make presentations before a screening and review committee of the founding members of WisconsinRx.
• The founding members then selected the top two PBMs for further negotiations.
• AdvancePCS was chosen to provide PBM services for WisconsinRx members. In mid-2004, caremark merged with AdvancePCS, becoming the new business partner.

Why Caremark (fka AdvancePCS)?

Caremark is an experienced national pharmacy benefits management firm able to administer multiple benefit designs for varied WisconsinRx member groups.

Caremark has sophisticated systems capability and access to a broad range of clinical resources that will be available to WisconsinRx members.

WisconsinRx has secured extremely aggressive pricing terms with Caremark.

Caremark has committed to transparency of pricing and is willing to support a Wisconsin-developed preferred prescription drug list based on clinical evidence, not on advertising.

Caremark will establish a service center in Wisconsin to support WisconsinRx.