Categories

Most recent posts

  XML Feeds

Search

« MedBen Honors Benchmark Anniversaries At Employee CeremonyGovernment Shutdown Ends With No Major Changes To Health Care Reform Law »

MedBen Promotes Prescription Plan Transparency -- And Maximum Client Savings

10/23/13

  04:14:10 pm, by MedBen5   , 369 words,  
Categories: Prescription, Health Plan Management

MedBen Promotes Prescription Plan Transparency -- And Maximum Client Savings

Drugs

A recent Fortune magazine article paints an unflattering portrait of pharmacy benefits managers (PBMs) that make huge gross profits from a non-transparent payment model. It’s a strategy that some third party administrators may shrug off as “just good business"… but not MedBen.

In the article, writer Katherine Eban profiles a non-profit health care employer that hired a national PBM to reduce their prescription drug costs, only to find its Rx bills soaring. A bit of detective work by the employer revealed that the PBM greatly padded its “spread” – the difference between how much it paid to buy drugs and what it sold them for. The profits on this practice typically range from $8 to $10 a prescription, but in one extreme case, the PBM reaped a spread of $65.62 on a single bottle of a generic antibiotic.

PBMs who engage in tactics like this use the employer’s unfamiliarity with drug pricing to their financial advantage. What’s more, they may contractually keep pharmacies from disclosing the amount they’ve been paid. And all you can do is take them at their word that they’re saving you money… and maybe they even are, but certainly not as much as you could be saving.

At MedBen, however, our responsibility to the client is to keep pharmacy costs as low AND as clear-cut as possible… and maximize client savings while doing so. That’s why we have an established partnership with (as the article calls them) a “transparent PBM".

This new breed of Rx manager, which comprises only a small share of the total PBM market, takes a flat administrative fee for each prescription, rather than profiting from spread or other unstated incentives. And they will let you know how much they pay the pharmacies.

In addition, 100% of drug company rebates and other discounts go directly into our clients’ health plan. Some third party administrators will hold back a portion of these rebates – or not divulge them at all. But MedBen will make sure that you receive every dollar that’s coming to you, and verify it with easy-to-understand reports.

Working with a transparent PBM can lead to real prescription plan savings. To learn more, contact MedBen Vice President of Sales and Marketing Brian Fargus at bfargus@medben.com.

No feedback yet