Kaiser Permanente health plans in Washington state commissioned Milliman to conduct a study comparing their calendar-year 2023 prescription drug (Rx) costs for their mid-to-large commercial group line of business relative to the market. Kaiser Foundation Health Plan of Washington administers a suite of HMO products, while Kaiser Foundation Health Plan of Washington Options Inc. administers a suite of PPO products. The study revealed statistically significant Rx cost savings for commercial group members enrolled in the plans. We present the total cost savings represented as a percentage of total control group Rx per member per month (PMPM) allowed dollars and as actual PMPM allowed dollars for Kaiser Permanente’s HMO and PPO products compared to the matched market benchmark.

Key sections:

• Executive summary, noting post-regression cost savings for each plan
• Background and objective
• Results, including discussion of matching variables, assessment of covariate balance, regression output, and comparison to benchmarks

This report was commissioned by Kaiser Foundation Health Plan of Washington and Kaiser Foundation Health Plan of Washington Options, Inc.