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Colorado hopes to save millions by changing how state employee health plan pays for prescriptions

Colorado leaders are hoping to save millions of dollars through the state employee health plan by changing how prescription drugs are managed — with the option for nonprofit organizations and businesses to join in later if it works out.


House Bill 1237 requires the Colorado Department of Personnel and Administration to conduct a “reverse auction” for handling the state employee health plan’s pharmacy benefits. Colorado will be the fourth state to require pharmacy benefit managers who want the contract for state employees to compete to offer the lowest costs on prescription drugs.


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