Schenectady County saves millions through health care innovation

“When I became chairman of the Legislature in 2004, the Legislature asked our staff to negotiate and implement new and progressive cost-saving reforms in healthcare. These reforms have succeeded beyond all expectations,” said Schenectady County Legislature Chair Susan E. Savage.

In 2008, Schenectady County saved $2,537,804 in health care costs through these new and innovative programs.

“If Schenectady County had not adopted the innovative Schenectady Meds reforms in 2005, and if Schenectady County stayed with the old way of doing business with 12 percent annual drug cost increases, our expenditures for pharmaceuticals for 2008 would be more than $2.5 million higher than they actually were in 2008,” said Savage.

“I am projecting, based upon my analysis of current trends, that Schenectady County’s drug costs for 2009 once again will not increase. I estimate that our annual savings for 2009 will reach $3,460,250, and that our cumulative five-year savings will be $9,282,309,” said Schenectady County Legislator and Ways and Means Chairman Philip Fields. “I take pride in the fact that I sponsored the legislation enacting Schenectady Meds with its innovative use of Canadian and U.S. mail order pharmaceuticals. Schenectady County was the first municipality in the state to utilize the Canadian option, and it is saving taxpayers more money each year. Our 2008 annual savings of over $2.5 million translates into a 4 percent reduction in the property tax rate.” Click here for more news coverage.