PBM copay accumulator programs are a relatively recent development in the health insurance industry, particularly in the United States. These programs have significant implications for patients, especially those requiring expensive, specialty medications. Copay accumulator programs are policies implemented by some health insurers and pharmacy benefit managers (PBM). Under these programs, any payments made by a third party (such as a drug manufacturer's copay assistance program) do not count towards a patient's deductible or out-of-pocket maximum. Understanding Copay Accumulator Programs Patients who rely on manufacturer copay assistance to afford expensive medications find themselves facing higher out-of-pocket costs once the assistance is exhausted. This can happen mid-year, leaving patients suddenly responsible for large expenses.The increased cost burden can lead to non-adherence to medication regimens, as patients may skip doses or stop taking medications due to cost. The Role of Pharmacy Benefit Managers (PBMs) PBMs, who manage prescription drug benefits on behalf of health insurers, play a crucial role in the implementation of copay accumulator programs. PBMs may have financial incentives to promote copay accumulator programs. By not allowing manufacturer assistance to count towards deductibles, they effectively extend the period during which patients pay out-of-pocket, potentially increasing the PBMs' share of drug costs covered by patients.PBMs may use the existence of manufacturer assistance programs as leverage in price negotiations with drug manufacturers, arguing that these programs reduce the effective price of drugs.Employers, especially those providing self-funded health insurance plans, are often persuaded by PBMs to adopt copay accumulator programs. PBMs may present these programs as cost-saving measures.There is often a lack of transparency in how PBMs communicate the impact of these programs to employers and, subsequently, to the employees. This lack of clarity can lead to unexpected expenses for patients who are unaware of the program's details. How Copay Accumulators Work In a copay accumulator program, when a patient uses a drug manufacturer’s copay card or coupon to pay for a medication, this amount does not count towards their deductible or out-of-pocket maximum. Once the copay assistance is exhausted, the patient must pay out-of-pocket until their deductible is met. Example: Imagine a patient, Alex, has a $3,000 annual deductible. Alex uses a medication that costs $1,000 per month. Alex has a copay card from the drug manufacturer that covers $900 of the cost each month. For the first three months, Alex pays $100 out-of-pocket (the remaining cost after copay card), totaling $300. However, since the $2,700 paid by the copay card doesn’t count towards the deductible, Alex still has the full $3,000 deductible remaining. Once the copay card is maxed out, Alex must pay the full $1,000 per month until the deductible is met. Examples of how Copay Accumulator and Copay Maximizer programs work How Copay Maximizers Work Copay maximizers set a minimum out-of-pocket cost for all patients using a manufacturer’s copay card, regardless of the actual drug cost. The program spreads the value of the copay card across the year, ensuring that it counts towards the deductible but also maximizing the time…

PBMs Should Brace for a Copay Accumulator Program Shift and other notes from around the interweb: Become an Expert in Managing Pharmacy Benefits PBMs Should Brace for a Copay Accumulator Program Shift. Starting in 2020, the Centers for Medicare & Medicaid Services (CMS) allowed insurers to use copay accumulators for brand-name drugs that have a suitable generic alternative. However, for plan year 2021, CMS changed the rules to permit copay accumulators for all drugs, regardless of generic availability. This broader rule was challenged in the D.C. Circuit Court and overturned. As a result, the 2020 regulation is back in effect, meaning copay accumulators can only be applied to brand drugs that have a medically appropriate generic equivalent. Plan Sponsors Have a Fiduciary Duty to Employees that Includes Scrutiny of PBM-Owned Rebate Aggregators. Drug manufacturer rebates can be a valuable tool for controlling the rising costs of prescription drugs. Most manufacturers offer a rebate program through which they agree to return a part of the drug’s list price to plans in exchange for access to the plans’ drug “formulary”. Rebates are intended to flow through to the plan sponsors and benefit patients, reducing their overall drug spend. The rebate process has been hijacked by PBMs and their sister-aggregators. PBMs utilize rebate aggregators to negotiate drug manufacturer rebates on behalf of the plans they administer. In 2022, just three PBMs along with their rebate aggregators, controlled 79 percent of the market. Some of the largest rebate aggregators include Zinc (owned by CVS Caremark), Ascent (owned by Express Scripts), and Emisar (owned by United Healthcare). Pharmacy Benefit Managers: History, Business Practices, Economics, and Policy. Pharmacy benefit managers evolved in parallel with the pharmaceutical manufacturing and health insurance industries. The evolution of the PBM industry has been characterized by horizontal and vertical integration and market concentration. The PBM provides key functions: formulary design, utilization management, price negotiation, pharmacy network formation, and mail order pharmacy services. Criticism of the PBM industry centers around the lack of competition, pricing, agency problems, and lack of transparency. Legislation to address these concerns has been introduced at the state and federal levels, but the potential for these policies to address concerns about PBMs is unknown and may be eclipsed by private sector responses. Competition in Commercial PBM Markets and Vertical Integration of Health Insurers with PBMs: 2023 Update. Based on 2020 data and newly acquired 2021 data for people with a commercial drug benefit tied to a medical benefit and the PBMs used by insurers, the updated analysis presents market insight on five PBM services performed for insurers: rebate negotiation, retail network management, claim adjudication, formulary management, and benefit design. Insurers face a make-or-buy decision—they can perform these functions in-house or buy them from a PBM. The AMA Policy Research Perspectives report, “Competition in Commercial PBM Markets and Vertical Integration of Health Insurers with PBMs: 2023 Update”, found that insurers use a PBM for three of them—rebate negotiation, retail network management and claims adjudication—and therefore assessed market competition for…

Five Exceptional Individuals Earn Prestigious CPBS Designation; Frank Chen, Achieves Top Honors with Perfect Final Exam Score The Pharmacy Benefit Institute of America (PBIA) is delighted to announce the latest group of accomplished professionals who have successfully completed the rigorous Certified Pharmacy Benefits Specialist (CPBS) program. This class's cohort includes Frank Chen, Shravan Patel, Janice Rhee, Barry Rowley, and Cynthia Yu who have all demonstrated exceptional dedication and skill in the field of pharmacy benefits management. Click to Learn More Leading the class with distinction, Frank Chen achieved a remarkable feat by scoring a perfect score on the final exam, setting a high standard for future cohorts. This accomplishment is a testament to his commitment and expertise in the domain of pharmacy benefits. The CPBS program, offered exclusively by PBIA, is an in-depth certification designed to equip professionals with comprehensive knowledge and skills essential for navigating the complex landscape of pharmacy benefits. Covering a wide array of topics such as industry trends, healthcare regulations, cost management strategies, and patient care optimization, the program prepares individuals for leadership roles in the industry. Each graduate has shown remarkable commitment to their professional development and the advancement of the pharmacy benefits sector. Their achievements are indicative of their dedication to staying abreast of industry trends and delivering the highest quality of care and service to patients. "We are incredibly proud of the hard work and dedication shown by these individuals in earning their CPBS designation," said Tyrone Squires, Founder of PBIA. "Their drive for continuous learning and excellence is inspirational and sets a benchmark in the pharmacy benefits management field." PBIA extends its heartfelt congratulations to these graduates on their remarkable achievement and wishes them continued success in their careers. The CPBS designation is a clear indicator of their expertise and commitment to advancing the pharmacy benefits management field. For more information about the CPBS program and PBIA, please visit https://pharmacybenefitinstitute.com or contact Maricor Bonjoc at info@pharmacybenefitinstitute.com or 702-389-1159. [About PBIA]The Pharmacy Benefit Institute of America (PBIA) is a leading organization dedicated to providing comprehensive education and professional development in the field of pharmacy benefits management. Approved by various authoritative bodies, PBIA offers certification programs and resources to empower professionals with the knowledge and skills essential in this dynamic industry. Maricor BonjocPharmacy Benefit Institute of America+1 866-499-1940 ext. 244info@pharmacybenefitinstitute.comVisit us on social media:FacebookLinkedIn

Plan Sponsors Have a Fiduciary Duty to Employees that Includes Scrutiny of PBM-Owned Rebate Aggregators and other notes from around the interweb: Become an Expert in Managing Pharmacy Benefits Plan Sponsors Have a Fiduciary Duty to Employees that Includes Scrutiny of PBM-Owned Rebate Aggregators. Drug manufacturer rebates can be a valuable tool for controlling the rising costs of prescription drugs. Most manufacturers offer a rebate program through which they agree to return a part of the drug’s list price to plans in exchange for access to the plans’ drug “formulary”. Rebates are intended to flow through to the plan sponsors and benefit patients, reducing their overall drug spend. The rebate process has been hijacked by PBMs and their sister-aggregators. PBMs utilize rebate aggregators to negotiate drug manufacturer rebates on behalf of the plans they administer. In 2022, just three PBMs along with their rebate aggregators, controlled 79 percent of the market. Some of the largest rebate aggregators include Zinc (owned by CVS Caremark), Ascent (owned by Express Scripts), and Emisar (owned by United Healthcare). Pharmacy Benefit Managers: History, Business Practices, Economics, and Policy. Pharmacy benefit managers evolved in parallel with the pharmaceutical manufacturing and health insurance industries. The evolution of the PBM industry has been characterized by horizontal and vertical integration and market concentration. The PBM provides key functions: formulary design, utilization management, price negotiation, pharmacy network formation, and mail order pharmacy services. Criticism of the PBM industry centers around the lack of competition, pricing, agency problems, and lack of transparency. Legislation to address these concerns has been introduced at the state and federal levels, but the potential for these policies to address concerns about PBMs is unknown and may be eclipsed by private sector responses. Elevance, Cigna settle contract claims, clearing way for appeal in $14.8 bln suit. Elevance previously owned a PBM, NextRx. In 2008, with NextRx's business struggling, Elevance started looking for a larger PBM to buy NextRx and contract to provide Elevance's PBM services. Express Scripts submitted the winning bid for that process, but Elevance alleged in its lawsuit that after being awarded the contract, it refused to negotiate in good faith. Express Scripts in turn accused Elevance of bad faith. It dropped that claim earlier this year, but reserved the right to revive it if Elevance's lawsuit is revived on appeal. Competition in Commercial PBM Markets and Vertical Integration of Health Insurers with PBMs: 2023 Update. Based on 2020 data and newly acquired 2021 data for people with a commercial drug benefit tied to a medical benefit and the PBMs used by insurers, the updated analysis presents market insight on five PBM services performed for insurers: rebate negotiation, retail network management, claim adjudication, formulary management, and benefit design. Insurers face a make-or-buy decision—they can perform these functions in-house or buy them from a PBM. The AMA Policy Research Perspectives report, “Competition in Commercial PBM Markets and Vertical Integration of Health Insurers with PBMs: 2023 Update”, found that insurers use a PBM for three of them—rebate…

Social Determinants of Health (SDOH) refer to the conditions in the environments where people are born, live, learn, work, play, worship, and age that affect a wide range of health, functioning, and quality-of-life outcomes and risks. SDOH can be grouped into five key areas: economic stability, education access and quality, healthcare access and quality, neighborhood and built environment, and social and community context. Here are 5 strategies for employers to address social determinants of health: SDOH through a mosaic of interconnected puzzle pieces Promote Economic Stability: Employers can provide competitive salaries, offer financial wellness programs, and create opportunities for career advancement. Ensuring job security and offering benefits such as retirement plans can significantly improve the economic stability of employees.Enhance Education Access and Quality: Employers can invest in their employees' education through tuition assistance programs, professional development opportunities, and on-the-job training. This not only helps employees advance in their careers but also contributes to their overall well-being.Improve Healthcare Access and Quality: Offering comprehensive health insurance, providing access to mental health resources, and organizing health and wellness programs can make a significant difference in employees’ health. Employers can also offer flexible work hours or telemedicine services to make healthcare more accessible.Support a Healthy Neighborhood and Built Environment: Employers can contribute to a healthy work environment by ensuring workplace safety, offering ergonomic workstations, and creating spaces that encourage physical activity, like gyms or walking trails. They can also support local initiatives that aim to improve community health and environmental conditions.Foster Social and Community Context: Creating a workplace culture that values diversity, inclusion, and social support can have a positive impact on employees’ mental health and overall well-being. Employers can organize community service activities, support local businesses, and encourage employee participation in social groups or clubs to build a sense of community. By addressing these 5 strategies for employers to address social determinants of health, employers can not only improve the health and well-being of their employees but also contribute to a more productive and engaged workforce. If you collaborate with TransparentRx and opt for our Care Navigation services, we're equipped to pinpoint factors influencing the health of our members. The Care Navigation team is dedicated to coordinating referrals to local service providers, ensuring a streamlined approach to healthcare management.

Pharmacy Benefit Managers: History, Business Practices, Economics, and Policy and other notes from around the interweb: Become an Expert in Managing Pharmacy Benefits Pharmacy Benefit Managers: History, Business Practices, Economics, and Policy. Pharmacy benefit managers evolved in parallel with the pharmaceutical manufacturing and health insurance industries. The evolution of the PBM industry has been characterized by horizontal and vertical integration and market concentration. The PBM provides key functions: formulary design, utilization management, price negotiation, pharmacy network formation, and mail order pharmacy services. Criticism of the PBM industry centers around the lack of competition, pricing, agency problems, and lack of transparency. Legislation to address these concerns has been introduced at the state and federal levels, but the potential for these policies to address concerns about PBMs is unknown and may be eclipsed by private sector responses. Copay Accumulators: Implications for PBMs and Health Plans After Court Strikes Down HHS Rule. The striking down of the 2021 HHS rule on copay accumulators represents a significant development that necessitates adaptation from health plans and PBMs, who will need to adjust their operations on not just copay accumulator programs, but also copay maximizers and potentially alternative funding programs (the most recent evolution of these copay adjustment programs), to align with the reinstated federal rule. This may involve revising policies and procedures to ensure compliance and communicating the changes in copay accumulator policies to members to ensure transparency and clear communication so that members understand their cost-sharing responsibilities. Additionally, health plans and PBMs may need to reevaluate their formulary and benefit design to accommodate the new regulatory landscape while continuing to provide cost-effective and quality care to patients. Pharmacy Benefit Manager Pricing for High Utilization Generic Drugs. The practice by pharmacy benefit managers (PBMs) of spread pricing—charging the client (i.e. insurer) a higher amount than is reimbursed to the pharmacy—has garnered substantial attention from policymakers. The bipartisan proposals in the PBM Transparency Act and PBM Reform Act and numerous state laws prohibit spread pricing. However, others in the pharmaceutical supply chain, such as pharmacies and wholesalers, also rely on spread pricing to earn profits. The gross profit for each entity in the supply chain remains unexplored in the literature. Using Medicare Part D data, this study analyzed entity-level gross profit in the pharmaceutical supply chain for high-utilization generic drugs. Competition in Commercial PBM Markets and Vertical Integration of Health Insurers with PBMs: 2023 Update. Based on 2020 data and newly acquired 2021 data for people with a commercial drug benefit tied to a medical benefit and the PBMs used by insurers, the updated analysis presents market insight on five PBM services performed for insurers: rebate negotiation, retail network management, claim adjudication, formulary management, and benefit design. Insurers face a make-or-buy decision—they can perform these functions in-house or buy them from a PBM. The AMA Policy Research Perspectives report, “Competition in Commercial PBM Markets and Vertical Integration of Health Insurers with PBMs: 2023 Update”, found that insurers use a PBM for three of them—rebate negotiation, retail…

TransparentRx, a renowned leader in fiduciary pharmacy benefit management solutions, is proud to announce its inclusion in the esteemed 7th Annual Vet100 List. This honor underscores the company's unwavering commitment to excellence and its continued dedication to providing transparent pharmacy benefit solutions to clients worldwide. Learn More The Vet100 List is an annual compilation that celebrates the top 100 veteran-led companies that have demonstrated remarkable growth, innovation, and leadership in their respective industries. Being featured on this list is not only a testament to TransparentRx's business acumen but also its dedication to upholding the values and discipline instilled from military service. Tyrone Squires, the Managing Director of TransparentRx and a U.S. Navy veteran, commented on the achievement, "Being recognized in the Vet100 List is a significant milestone for our team. It reflects our relentless pursuit of excellence and our commitment to serving our clients with integrity, transparency, and dedication. We are deeply honored and will continue to uphold the high standards that this recognition represents." Since its inception, TransparentRx has revolutionized the pharmacy benefit management industry with its groundbreaking fiduciary business model. This recognition in the Vet100 List further solidifies its position as an industry frontrunner. TransparentRx would like to extend its gratitude to its dedicated team, loyal clients, and partners for their unwavering support and trust. The company looks forward to further advancements, collaborations, and milestones in the coming years. For more information about TransparentRx or to schedule an interview with Tyrone Squires, please contact Maricor Bonjoc at 866-499-1940 ext. 244 or maricor.bonjoc@transparentrx.com. About TransparentRx:Established in 2014, TransparentRx has carved out a niche in the healthcare industry with its innovative fiduciary pharmacy benefit management solutions. Dedicated to guiding organizations through the intricate landscape of healthcare expenses, the company is anchored by a philosophy of unwavering transparency, robust cost control, and unparalleled customer support. This steadfast commitment has earned TransparentRx distinguished recognition on the 2023 Vet100 list, underscoring its role as a pioneering force in healthcare innovation. About the Vet100 List:The Vet100 List is an annual recognition of the top 100 fastest-growing veteran-led companies in the country. Curated based on growth metrics, leadership, and innovation, the list celebrates the entrepreneurial spirit of military veterans and their contributions to the business world. Tyrone D SquiresTransparentRx866-499-1940tyrone.squires@transparentrx.comVisit us on social media:FacebookTwitterLinkedInYouTube

Benefits Pro recently published "5 Pharmacy Benefit Trends on Every Employer’s Mind." The article claims half of employers feel very knowledgeable about pharmacy benefits. From my unique perspective, this figure is exaggerated, and the real percentage is closer to 10%. If you're skeptical, let's confirm it together. Embark on this brief quiz to discover the truth. When employers are truly knowledgeable about pharmacy benefits, it often leads to better healthcare decisions for employees and more cost-effective management of benefits. Here are critical pharmacy benefit questions to ask for HR. Get the PDF Human Resources (HR) professionals can improve their knowledge of pharmacy benefits management (PBM) by following these steps: Education and Training: Enroll in courses or workshops that cover the basics of PBM, including understanding drug pricing, pharmacy networks, formulary management, and the regulatory environment.Industry Research: Stay updated with industry reports and publications from reputable sources to keep track of trends, innovations, and changes in PBM practices and regulations.Networking: Join professional HR and PBM groups and forums to exchange knowledge, experiences, and best practices with peers and experts in the field.Vendor Partnerships: Work closely with PBM vendors to understand the specifics of contracts, cost management strategies, and to receive tailored training on their platforms and services.Employee Feedback: Gather feedback from employees about their experiences and challenges with the current pharmacy benefits to identify areas for improvement.Compliance Understanding: Ensure a deep understanding of compliance requirements, such as those related to the Consolidated Appropriations Act (CAA), Health Insurance Portability and Accountability Act (HIPAA), and the Affordable Care Act (ACA), which can all affect pharmacy benefit managers.Use of Technology: Leverage technology and data analytics to understand usage patterns, cost drivers, and to evaluate the effectiveness of current PBM strategies. By focusing on these areas, HR professionals can develop a well-rounded expertise in pharmacy benefits management (PBM) that can contribute to better healthcare decisions, more cost-effective and employee-friendly benefits plans.

Copay Accumulators: Implications for PBMs and Health Plans After Court Strikes Down HHS Rule and other notes from around the interweb: Copay Accumulators: Implications for PBMs and Health Plans After Court Strikes Down HHS Rule. The striking down of the 2021 HHS rule on copay accumulators represents a significant development that necessitates adaptation from health plans and PBMs, who will need to adjust their operations on not just copay accumulator programs, but also copay maximizers and potentially alternative funding programs (the most recent evolution of these copay adjustment programs), to align with the reinstated federal rule. This may involve revising policies and procedures to ensure compliance and communicating the changes in copay accumulator policies to members to ensure transparency and clear communication so that members understand their cost-sharing responsibilities. Additionally, health plans and PBMs may need to reevaluate their formulary and benefit design to accommodate the new regulatory landscape while continuing to provide cost-effective and quality care to patients. Become an Expert in Managing Pharmacy Benefits Pharmacy Benefit Manager Pricing and Spread Pricing for High Utilization Generic Drugs. The practice by pharmacy benefit managers (PBMs) of spread pricing—charging the client (i.e. insurer) a higher amount than is reimbursed to the pharmacy—has garnered substantial attention from policymakers. The bipartisan proposals in the PBM Transparency Act and PBM Reform Act and numerous state laws prohibit spread pricing. However, others in the pharmaceutical supply chain, such as pharmacies and wholesalers, also rely on spread pricing to earn profits. The gross profit for each entity in the supply chain remains unexplored in the literature. Using Medicare Part D data, this study analyzed entity-level gross profit in the pharmaceutical supply chain for high-utilization generic drugs. Employers take tougher measures because of rising health costs. Employers are facing the biggest annual increase in health care costs in a decade, according to Mercer. Two-thirds of the employer health insurance market is in self-insured plans, in which an employer is on the hook for some or all of workers' health care costs rather than an insurer, according to KFF. However, they work with third parties — often well-known health insurance brands and pharmacy benefit managers — to administer their benefits. Large, self-insured employers over the past year have been able to examine insurers' negotiated rates with providers, thanks to federal price transparency rules. Congress, meanwhile, is looking at strengthening transparency requirements. These employers are beginning to see that their own arrangements aren't always working to their benefit, said Rob Andrews, CEO of the Health Transformation Alliance, which includes member companies like Marriott, Coca-Cola and American Express. Competition in Commercial PBM Markets and Vertical Integration of Health Insurers with PBMs: 2023 Update. Based on 2020 data and newly acquired 2021 data for people with a commercial drug benefit tied to a medical benefit and the PBMs used by insurers, the updated analysis presents market insight on five PBM services performed for insurers: rebate negotiation, retail network management, claim adjudication, formulary management, and benefit design. Insurers face a make-or-buy decision—they…

In the highly competitive world of healthcare, Pharmacy Benefit Managers (PBMs) play a crucial role in ensuring that patients have access to affordable and high-quality medications. To gauge their performance and customer satisfaction, many PBMs turn to Net Promoter Score (NPS). In this blog, we will explore what NPS is, how it is calculated, strategies to improve a low NPS score, and take a closer look at the Net Promoter Score (NPS) in the PBM industry. Understanding Net Promoter Score (NPS) Net Promoter Score, developed by Fred Reichheld in 2003, is a metric used to measure customer loyalty and satisfaction. It provides a straightforward way to assess how likely customers are to recommend your company's products or services to others. NPS is based on a single, simple question: "On a scale of 0 to 10, how likely are you to recommend our company/product/service to a friend or colleague?" Based on their responses, customers are categorized into three groups: Promoters (score 9-10): These are enthusiastic and loyal customers who are likely to recommend your company.Passives (score 7-8): These customers are satisfied but not enthusiastic. They are less likely to promote your company.Detractors (score 0-6): These are unhappy customers who may even spread negative feedback about your company. Calculating NPS To calculate NPS, you subtract the percentage of Detractors from the percentage of Promoters. The formula looks like this: NPS = % Promoters - % Detractors NPS scores can range from -100 (if all respondents are Detractors) to +100 (if all respondents are Promoters). A higher NPS indicates better customer loyalty and satisfaction. Source: Retently Strategies to Improve a Low NPS Analyze Feedback: Start by collecting and analyzing customer feedback. Understand the reasons behind low scores and identify areas for improvement.Close the Feedback Loop: Reach out to Detractors and Passives to gather more detailed feedback. Show that you value their opinions and are committed to addressing their concerns.Continuous Improvement: Implement changes based on customer feedback. Communicate these improvements to your customers, showing them that their input matters.Employee Training: Ensure that your employees are well-trained and equipped to provide excellent service. Happy employees often lead to satisfied customers.Personalization: Tailor your services to individual customer needs. Personalized experiences can significantly boost customer satisfaction. PBM Industry NPS Performance: The PBM industry's NPS performance can vary widely based on factors such as the size of the PBM, the quality of services provided, and the effectiveness of cost-saving measures. The overall Net Promoter Score (NPS) of PBMs has suffered a dramatic decline from 38 in 2021 to 8 in 2023. Typically, PBMs with a strong focus on customer service and transparency tend to have higher NPS scores. In recent years, there has been a growing emphasis on transparency and accountability in the PBM industry, which has driven PBMs to improve their customer satisfaction efforts. PBMs that excel in areas like medication access, cost control, and customer support often receive higher NPS scores, reflecting their commitment to enhancing the patient experience. TransparentRx guarantees one-prompt access to a live,…