by Neil W. McCabe

Mayor Joseph A. Curtatone announced July 6 that he signed a contract with Prescription Benefits Services (PBS), a drug management firm that will utilize lower Canadian prices and other domestic discounts to offer savings to city employees and retirees.

The deal could save the city about $150,000 this year and more than a half a million dollars annually by its third year, said the mayor.

Curtatone said, “Rising healthcare costs are our number one fiscal problem.

“This program will help city employees and retirees to find less expensive prescriptions, cutting costs for both them and the city, which pays a major portion of each prescription’s cost,” he said.

PBS works with My Medication Advisor, LLC, a company that helps consumers buy and use medications properly and find the best prices; and Canusa Health, Inc., a firm that imports Canadian drugs, he said.

Under the new plan, which is voluntary, employees and retirees will be provided with extensive education on how to purchase the lower cost drugs and determine if generic alternatives are right for them. They will also receive regular updates on price changes, Curtatone said.

“Those who choose to participate will realize a significant savings because their co-pays will be waived,” said John J. McGinn, the city’s treasurer.

McGinn said his office estimates that the city will save $600,000 by the third year, when a significant number of employees and retirees sign up.

“Savings for the city depend on how many employees and retirees enroll in the program. Although the city is rolling out an extensive education program to recruit enrollees, the number of participants is expected to grow slowly,” said McGinn.

The mayor said the program is intended to give people a real choice when buying prescription drugs. “Particularly for retirees on fixed incomes, this is a way to reduce their costs.”

Curtatone said he expects the city will spend an estimated $5.6 million on prescription drugs in fiscal year 2005.