Chrysler Group Faciltates Cheap Drugs

AUBURN HILLS, Mich., Nov. 26 -- The Chrysler Group announced today that it has developed a new program for its supplier partners which allows participants to purchase prescription drugs at substantially reduced costs. Called the National Supplier Pharmacy Buy Partnership program, the new initiative will help enrolled supplier companies realize annual cost savings of up to 10 percent by decreasing the cost of pharmaceuticals through group volume purchasing.

``Chrysler Group is always looking for avenues to jointly reduce costs with our supplier base and the National Supplier Pharmacy Buy Partnership program allows us to do that,'' said Peter Rosenfeld, Chrysler Group Vice President - Worldwide Production Purchasing and Supplier Commodity Strategy. ``This program offers both suppliers and the Chrysler Group clear benefits to the bottom line.''

Suppliers who are eligible to join the National Supplier Pharmacy Buy Partnership program must be a current member of Chrysler Group's supply chain and have a minimum of 5,000 combined employees and retirees in the United States. However, Chrysler Group, in conjunction with pharmacy benefits manager Merck-Medco L.L.C., will also implement a program to allow suppliers with less than 5,000 employees to participate in the plan by January 2002.

``This initiative is part of an ongoing corporate effort to reduce rising healthcare costs, and more specifically, allow suppliers to reduce prescription drug costs,'' said Tom Hadrych, Chrysler Group Vice President Benefits & Corporate Services. ``As a global company, Chrysler Group understands that finding creative solutions to partner with our supply base offers the greatest opportunity for mutual cost reductions and savings.''

Chrysler Group's pharmacy benefit manager, Merck-Medco L.L.C., of New Jersey, will administer the program. In addition to group volume purchasing, the program permits flexibility between Merck-Medco and the enrolled supplier company by allowing the supplier to determine its own pharmacy plan design, pharmacy network and co-pay structure.

Chrysler Group rolled the program out to a select group of suppliers earlier this year. Currently, there are nine employers enrolled in the program -- covering approximately 150,000 employees and retirees. Over 300,000 supplier employees and retirees are expected to enroll by the second quarter of 2002.

ArvinMeritor, Union Pacific, Overnite Transportation, Exide Corporation, and Yazaki North America are a few of the companies participating in the program.

``Initially, we were skeptical about whether a car company could improve our existing plan,'' said Richard Greb, Senior Director Benefits, ArvinMeritor. ``However, we've been pleased with the reduction in costs and the enhanced mail order capabilities provided by this innovative program.''