PBM Sales Rep. Reacts To The News……………….
Plan sponsors seeking solutions to high cost prescription drugs must understand a single source solution is not their best bet. Lowering Rx costs is all about sourcing the right drug at the right price. It’s that simple.
PBMs are a single source Rx vendor that does not always provide the best pricing. Plan sponsors using a PBM are held captive through contract language prohibiting them from sourcing cheaper drugs that may be available in the market. For example, if the PBM price for Drug A is $5,000 and the price for the same drug from another source is $2,000, the plan sponsor is prohibited from saving the $3,000 difference. This practice creates a DeFacto non-compete contract. Why would any plan sponsor enter into a contract that binds them to violate their fiduciary duties?
Is there a better way to purchase prescription drugs?
We are seeing the rise of multiple vendors entering the market offering Rx sourcing services. As a single point of contact, when a plan member needs a covered prescription drug the sourcing vendor seeks out the best and lowest price and ships the medication directly to the member usually within three days. The source may be a retail pharmacy in Anytown, USA or the one down the street from your home. Or the prescription may be sourced through Canada or the UK at prices that will bring an euphoric rush to any CFO with a calculator.
A vendor we know recently shared a savings report showing significant savings using alternate Rx sourcing in lieu of using a PBM. The group case study showed savings of 65% in the aggregate over their prior year’s spend managed by a PBM. We learned of another vendor this morning via a solicitation email from ScriptSourcing.
There are more out there and more coming. Stay tuned.
