PBMs, or Pharmacy Benefits Managers, are, in essence, the pharmacy benefits marketplace’s intermediaries. Over 80 percent of employers in the United States rely on pharmacy benefit managers (PBMs) to administer their health insurance plans’ pharmacy benefits.
Companies, health plans, labor unions, and other organizations use PBMs to communicate with drug manufacturers, process prescription claims, and keep track of the costs of those claims. When it comes to health outcomes and costs, pharmaceutical benefit managers (PBMs) play a critical role in facilitating the best possible outcomes for members and employers alike. If an employer wants to maximize savings while also safeguarding the health of its employees, a pharmacy benefit management (PBM) strategy that is tailored to their specific needs is essential.
What exactly do PBMs do?
Both curating pharmacy prescription benefit plans and assisting patients in achieving better health outcomes through increased access to appropriate medications are primary goals of PBMs. PBMs aim to do both.
As part of this process, PBMs work closely with pharmaceutical companies as well as retailers, pharmacies, and third-party administrators.
In order to provide patients and employers with greater access to medications across multiple retail chains at competitive prices, PBMs bargain with a large network of retail or mail-order pharmacies.
Pharmacist benefit managers (PBMs) have access to a wide range of clinical programs to help them ensure appropriate medication use, safety precautions and cost-savings opportunities.
In many cases, PBMs serve as advisors to employers by providing recommendations on various plan designs, clinical programs, and other aspects of healthcare.
Increase Access to Medication
Pharmacy benefit managers, or PBMs, help patients get the drugs they need by negotiating directly with the companies that make or distribute them. In order to pass these savings on to their clients, PBMs work with wholesale acquisition costs (WAC) to secure volume discounts. Additionally, they work out payment terms for programs that are adhered to as well.
Pharmacist benefit managers (PBMs) help to reduce rising prescription costs by ensuring that drugs are administered properly and achieve the best possible outcomes for the patient. PBMs are able to provide patients and employers with greater access to medications by establishing a large network of retail or mail pharmacies.
How do PBMs work with Pharmaceutical Manufacturers?
PBMs and pharmaceutical companies have a complicated relationship. There are a number of financial issues that make it difficult for drug companies and PBMs to work together effectively.
PBMs serve as a go-between for pharmaceutical companies and patients, determining whether a drug is affordable and putting programs in place to assist patients in getting the medications they need and getting the most benefit from those treatments. Included in this set of offerings are:
Rebates are paid to PBMs by pharmaceutical companies after PBMs negotiate the level of rebates the companies will offer for specific drugs. All, some, or no rebates may be passed on to the employer or plan sponsor depending on the contract between the PBM and the employer or plan sponsor.
Drugs that are covered under a specific plan are listed in a formulary. PBMs work with doctors and other clinical experts to put together a list of drugs that are both effective and affordable. Medications on the formulary are far more likely to be recommended to patients by their doctors, given the high volume of drugs that pass through a PBM. In an ideal world, pharmaceutical companies would like to ensure that their products are available to the people who need them.
Step Therapy Programs
Prior authorization for both traditional and specialty drugs is granted through step therapy programs. Prior to using a more expensive drug, the program ensures that patients have tried a less expensive drug that has been proven effective for a specific condition.
Prior Authorization Programs
Prescription drug misuse can be reduced through the use of Prior Authorization, a cost-saving feature. It is the goal of prior authorizations to keep certain drugs out of the hands of those who should not be prescribing or using them.
Additionally, PBMs are in charge of implementing other critical initiatives aimed at enhancing patient outcomes, such as cutting down on waste and increasing medication adherence, as well as overseeing the administration of expensive and complex specialty medications.
How do PBMs work with Employers?
Prescription benefit plans are typically designed and maintained over a three-year period by employers working with PBMs. There are many options for both parties to choose from, including deductibles, co-payments, co-insurances and clinical programs, during the first phase of the discovery process.
PBMs are in charge of four key elements of the agreement throughout the contract:
Prescription benefit plans entrust PBMs with the processing and payment of prescription drug claims.
PBMs negotiate rebate programs with pharmaceutical companies, as previously stated. In general, the PBM is in charge of administering rebate programs, which include a variety of complex models. All, some, or none of the rebate amount is returned to the employer or plan sponsor depending on the contract between the PBM and the employer or plan sponsor.
The goal of a prescription benefit plan’s clinical programs is to help members achieve the best possible clinical outcomes. Maintaining or improving health benefits while reducing costs is the ultimate goal of PBMs, who review data and monitor drug use on a regular basis.
There should be no hassle in purchasing medications and prescriptions for hospice and long-term care patients; care providers should not have to worry about expensive prices, delayed service, or inadequate customer support. Moreover, Spectrum Pharmacy Solutions is making it happen by promising to be your long-term, trustworthy and experienced partner.