Under state law, all contracts must be re-bid every three years. With the current Merck contract set to expire this year, the GIC issued a new request for proposal, in which Express Scripts responded with a bid $9 million per year cheaper than Merck.

Both the GIC and Express Scripts began informing members with the details of the new plan in late May. The Association has been assured by the GIC that the transition from Merck to Express Scripts will be a smooth one. The mechanics of the mail order drug program should work as they have in the past, with the exception of the new phone numbers and addresses for Express Scripts.

"This contract was awarded to the lowest bidder. It is that simple. Drug costs continue to rise and this was an easy way to save millions of dollars," said Association Insurance Coordinator Cheryl Stillman. "We have been promised things will go smoothly, but I would advise members not to wait until their prescription runs out to order a new one. Do it a couple of weeks in advance to avoid any mix-ups."

Copayments Increase

Along with the change in pharmacy vendor comes a new set of prescription drug copayments. These copayments are the amount to be paid by the retiree at their local pharmacy or to the mail order vendor (Express Scripts). While the retail prices are identical to those paid in previous years, the mail order copayment has sharply increased.

GIC officials felt the previous mail order rates were artificially low, since a three month supply is being purchased. State officials claim they had been subsidizing a larger portion of the mail order program than they do the retail program. The new rates are still less than an equivalent three months of retail payments.

"I know members are upset with the rate increase and are wondering how it could have happened. I don’t blame them. What needs to be understood is that these problems are not unique to Massachusetts, but rather a national crisis. Only so much can be done at the state level to keep the costs down," explained Association President Ralph White. "What I need to take issue with is the amount the copayments have suddenly increased. If this had to be done, it should have been implemented gradually.

"It must be stressed to the GIC and state officials that this Association will not sit back and allow costs to be shifted over to our members. I know these drugs are extremely expensive, but simply shifting the costs over to retirees does not solve the problem. More needs to be done to ensure access to the drugs people must have to survive, while keeping the costs down. Not an easy problem to solve."