Reducing Your Pharmacy Costs Doesn’t Have to Mean Sacrificing Employees’ Health.
Build your company’s ideal pharmacy benefit plan in terms of costs like deductibles and copayments with the Horton Group.
Reasons to pursue better pharmacy benefits management include the following:
- Skyrocketing prescription drug spending hurts your bottom line.
- Member satisfaction suffers when benefits are perceived as difficult to obtain.
- Increasing Rx spend reduces appetite for other benefits investments.
Pharmacy benefit management, typically a self-insurance option, provides your company the opportunity to carve out pharmacy services from your medical plan. This can be done by hiring a pharmacy benefit manager (PBM), who works independently from your insurance carrier.
The Horton Group can help you find the right pharmacy benefit manager for your company.
Finding the right PBM means finding someone who aligns with your company’s goals. We encourage you to foster a relationship with your PBM by keeping an open dialogue and asking questions.
A successful PBM can reduce health benefit costs by negotiating prices with drug manufacturers and distributors. In return, lower drug prices can lead to an increase in access to important medications.
There are two different ways a PBM may handle negotiating prices:
- Pass-Through Pricing: The drug costs you see are the costs you pay; discounts and rebates are passed directly to you. The PBM is paid strictly in admin fees.
- Spread Pricing: The cost your PBM charges you is more than the amount they pay the pharmacy, and the difference goes into the PBM’s pocket as additional profit – on top of admin fees.
Tactics such as spread pricing further highlight the importance of finding a transparent PBM. The Horton Group partners solely with managers whose signed contracts guarantee they only make money through admin fees.
Interested in learning more? Reach out today to learn how pharmacy benefit management could be the right option for your company.