National Labor Union

After years of rising pharmacy costs and ongoing member frustration, a large national labor union turned to modern pharmacy benefit manager (PBM) SmithRx for a better solution. The results: a 61.8% reduction in Per Member Per Month (PMPM) spend in the first year, a dramatically improved member experience, and a PMPM spend of $56 in 2024—well below the market average.

The Challenge: Member Experience Pitfalls & Soaring Costs

The client, a large national labor union, faced weekly member complaints and rising drug costs—all made more complex by a mobile workforce that was away from home for 6 months at a time. They needed a partner who could deliver cost savings while repairing member expectations.

The Solution: Modern, Cost-Focused Pharmacy Benefits

In 2022, the client chose to break free from their legacy PBM and work with SmithRx—unlocking powerful savings and delivering a dramatically improved member experience. Upon switching, their PMPM dropped by 61.8% in the first year and they’ve continued to maintain a PMPM below market average ever since. In the 3.5 years since implementation, they’ve also seen a sharp decline in member complaints and delivered a 5-star experience that members continuously rave about.

The Results: Dramatic PMPM Reduction & Experience Transformation

After coming on board with SmithRx, the union saw a 61.8% reduction in PMPM in the first year alone and lowered their Per Member Per Month (PMPM) spend to just $56 in 2024. This figure was well below their goal and far outperformed the industry average for cost. This performance resulted in a 20.6x return on investment (ROI) for their business.

To top it all off, their member experience improved by leaps and bounds. Members were paying less out of pocket, with over $1M Autoimmune Pathway Savings, but also had a more pleasant, seamless experience getting their medications.

“I had to reach out to SmithRx regarding a major prescription issue. I needed to get extra medication because I was going to be out of the country for a few months. I was so pleased with how [the representative] handled my case. She went above and beyond to help. She coordinated a three-way call with my pharmacy, stayed with me through a lengthy process (over 2 hours), and even followed up the next day to make sure everything was resolved—all on New Year’s Eve. Her professionalism, compassion, and dedication were truly exceptional.”

SmithRx Member, Union Group Google Review, January 2025

This member experience isn’t rare either; every member is treated with a high level of care and consideration that has tangible business impact. 

Looking Ahead: Exceptional Member Experiences

With spending down dramatically, what is this national business turning their sights to next? The member experience. With SmithRx, the organization is able to focus on meeting members where they are to deliver better health outcomes. 

With a dispersed field employee base, SmithRx’s multi-channel outreach and communication strategy is even more crucial. Members get clear onboarding and ongoing support no matter where they are in the field. 

The SmithRx support team conducts proactive outreach to their members to ensure savings. Members are thoughtfully guided throughout the process: from enrollment, provider and pharmacy outreach, to member satisfaction. This white glove approach to member services is especially impactful as members are transitioned from traditionally “high-cost” medications like autoimmune and other specialty drugs. 

SmithRx’s commitment to exceptional member experiences means that every new member is treated with care—and ultimately these smooth transitions result in more savings for members and for the organization as a whole.

The results SmithRx delivered for the union aren’t uncommon: they’re the standard we deliver for every client. Want to make the change to a modern, cost-focused PBM, but don’t know where to start? Catch our webinar on managing pharmacy benefits change without disruption, “Change Happens. Disruption Doesn’t Have To.” here.