Shifting Focus: Driving Low Net Cost in Pharmacy Benefits Management

A recent insightful article in The New York Times delves into the complexities and challenges of prescription drug costs and the role of Pharmacy Benefit Managers (PBMs). The piece highlights how traditional PBM models often prioritize high rebates, which can sometimes lead to higher overall drug costs and misaligned incentives.
At Health Delegates, we recognize these issues and take a fundamentally different approach. Our mission is to drive towards the lowest net cost for our clients rather than chasing high rebates. Here’s how we stand apart:
Health Delegates’ Unique Approach
Transparent Rebate Strategy:
- We focus on clear and straightforward contracting terms. Our goal is to ensure that our clients understand the true costs and savings associated with their pharmacy benefits, eliminating hidden fees and complex rebate structures that obscure the real costs.
Decoupled PBM Services Model:
- By utilizing a decoupled PBM services approach, our clients separate the rebate management from the other functions of pharmacy benefits management utilizing Health Delegates for formulary, clinical, and rebate support. This model ensures that incentives are not misaligned, as it segregates the administration of drug benefits from the negotiation of drug prices. This separation allows us to assist our clients more effectively and avoid conflicts of interest inherent in traditional PBM models.
Focus on Lowest Net Cost:
- Our primary objective is to achieve the lowest net cost for our clients. We prioritize overall drug spend reduction over high rebates. This involves diligent management of formulary design, utilization management, benefit drug list management, and drug pricing to minimize total costs while maintaining high standards of care.
Decreasing Trend:
- By focusing on the lowest net cost, we help our clients decrease their trend on overall drug spend. This includes proactive management of drug utilization and adherence to evidence-based guidelines, ensuring that patients receive the most appropriate therapies at the best possible cost.
Independent P&T Committee:
- Health Delegates features an independent Pharmacy and Therapeutics (P&T) committee. This committee, free from the influence of rebate-driven decisions, ensures that formulary choices are based on clinical evidence and patient outcomes. This clinical flexibility allows for better control over drug utilization and enhances the ability to provide the best possible care at the lowest cost.
Benefits of Our Approach
Alignment of Incentives:
- With a decoupled PBM services model, clients can be confident that our incentives are aligned with theirs and not with a global view. This alignment ensures that we are always working towards the common goal of reducing overall costs while improving patient outcomes.
Enhanced Transparency:
- Our approach fosters transparency, providing our clients with clear insights into their pharmacy benefits spend and the factors driving those costs. This, in turn, allows our clients to meet their goals and objectives for their offerings.
Improved Cost Management:
- By focusing on low net cost rather than high rebates, we deliver more sustainable and predictable cost management. This helps our clients to better plan and budget for their pharmacy benefits.
Clinical Flexibility:
- Our independent P&T committee ensures that formulary decisions are made based on clinical efficacy and patient needs, allowing for better management of drug utilization and improved patient outcomes.
cost management goals
Navigating the complexities of pharmacy benefits management requires a strategic approach that prioritizes true cost savings over superficially attractive rebate guarantees. At Health Delegates, our commitment to transparency, fitting into a decoupled PBM services model, and a focus on the lowest net cost sets us apart. We invite you to learn more about how our unique approach can benefit your organization and help you achieve your cost management goals.
For more information on how Health Delegates can support your pharmacy benefits management needs, please contact us today.
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