Anthem faces scrutiny over prescription drug program pricing and reinsurance costs

During the Franklin City Council meeting on March 3, 2025, a significant discussion emerged regarding the city's prescription drug program and reinsurance costs. Council members expressed concerns about recent changes made by Anthem, the provider managing the city's prescription drug benefits.

One council member noted that Anthem altered the way discounts were applied to prescription drug costs, which raised questions about the overall financial impact. "They put the discounts back up against the prescription drug costs on the renewal to take it out a little bit," the member stated, indicating uncertainty about whether these changes would ultimately balance out.

Additionally, the council addressed the reinsurance costs, acknowledging that they did not bid out these expenses. This decision has led to questions about the transparency and competitiveness of the city's insurance arrangements. The council confirmed that they receive a 10% commission on the reinsurance, a point that was met with agreement among members.

As the council continues to navigate these financial discussions, the implications of the changes to the prescription drug program and reinsurance costs will be closely monitored, with potential impacts on the city's budget and services. The council's commitment to reviewing these matters reflects a proactive approach to managing public resources effectively.