Are you overpaying for your Prescription Drug Plan ?
If you decided on a vendor through a traditional RFP process or spreadsheet re-price then the answer is a definite yes. Worse yet, because of contract limitations on audits and proprietary definitions you will not know how much you overpaid.
Prescription drug costs are controlled by the Pharmacy Benefit Manager's (PBM) contract. In most cases, the PBM writes the contract and the employer agrees to the boilerplate language. These contracts are invariably written to protect PBM and shareholder profits not to lower costs for employer groups or their employees.
What can you do about it?
First, forget about traditional RFP's and re-pricing as the only mechanism for controlling trend and getting the best price. Begin instead by dictating the terms of the contract! AWP and rebate guarantees are virtually meaningless if the PBM has the freedom to reclassify drugs and claims to meet the guarantees. Contract terms and formulary management mean everything. GLBG can help you manage both while lowering your cost and providing world-class services with broad access for your employees.