Springfield, Mass., officials plan to end the city's prescription drug reimportation program for city employees and retirees after their health coverage is transferred to the new state Group Insurance Commission, the Springfield Republican reports. The city was the first in the nation to implement a program to purchase lower-cost prescription drugs from Canada (Goonan, Springfield Republican, 8/25). The reimportation program, which was launched in July 2003, allows city employees and retirees to fax their prescriptions to a group of Ontario, Canada, pharmacies and receive their medications by mail. About 3,200 city employees, retirees and their dependents participated in the voluntary program in its first year, saving the city about $2.5 million (Kaiser Daily Health Policy Report, 7/15/04). Between January and April of this year, about 1,500 individuals participated in the program, according to Marilyn Montagna, personnel director for the city. The program possibly could end on Jan. 1, 2007, she said. Participants in the reimportation program do not pay a copayment for prescription drugs. Under the new state-run program, participants will pay a copay of $7 to $10 for generic medications and either $20 or $35 for brand-name treatments, Montagna said. The city will cover about 75% of heath care costs, and participants will cover about 25%, she said. Montagna said transferring coverage to the state program will reduce costs for the city and its employees and retirees. Philip Puccia, executive director of the city Finance Control Board, has estimated the transfer of employees and retirees to the state plan would save the city about $4 million in the first year and save city employees an additional $1.25 million, the Republican reports.

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Christopher Collins, former insurance director for the city who helped develop the reimportation program, said, "I'm afraid that some of the people that can least afford it are going to be hurt, and that's the retirees." Robert Brown, president of the Springfield Retired Police and Firefighters Association, said, "For the retirees and spouses and widows, it's going to be devastating." He added that the reimportation program "has saved us a lot of money and a lot of worry and fret." Montagna said the city is considering a subsidy plan aimed at addressing cost concerns for retirees (Springfield Republican, 8/25).

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