Free Internet Video Tells Corp. & Union & Govt. Health Plans How To Obtain 100% of Generic Drug Savings From PBMs
Pharmacy Benefit Consultants has distributed a free internet video to ensure that health plans - not PBMs - obtain the financial benefits that result from generic drug use. The video describes what every corporate and union and government health plan must do to ensure it obtains 100% of generic drug savings. The video also demonstrates that PBMs retain a large portion of financial savings that should result from generic drug sales, and explains how PBMs draft their contracts with health plans to do so. By watching this free video, health plans can quickly learn how to maximize their generic drug savings by rewriting their PBM contracts and demanding entirely different contract terms from their PBMs.
Morristown, NJ (PRWEB) April 29, 2008
To ensure that all corporate, union and government health plans are able to obtain 100% of generic drug savings, Pharmacy Benefit Consultants has distributed a free internet video, captioned: "How to Ensure Your Health Plan - Not Your PBM - Benefits From Generic Drug Use." The video identifies the contract terms that are present in almost every PBM/client contract that rob health plans of generic drug savings, and describes the contract changes that must be made to ensure that health plans obtain 100% of generic drug savings. The video can be viewed at: http://www. youtube. com/watch? v=bEcQ35W1NrI.
"Generic Drugs can provide enormous savings to health plans and their covered employees. But currently, it is PBMs - not health plans - that are retaining much of the financial benefits that flow from generic drug use," says Linda Cahn, President of Pharmacy Benefit Consultants. "For health plans to obtain real generic drug savings, health plans must entirely change their PBM contracts."
Cahn adds: "PBMs are thrilled when generic drug sales increase, because PBMs reap enormous profits from all such generic drug sales." PBMs' generic profits are described in the video, through quotations from PBM's SEC filings, and through a brief discussion of the difference between PBMs' costs to purchase generic drugs, and PBMs' invoiced prices to their clients for generic drugs.
"Unbeknownst to health plans, PBMs are retaining a large portion of the financial savings that health plans should be realizing from generic drug use. PBMs do so by manipulating the ambiguous contract terms they write into virtually all PBM/client contracts," says Cahn.
"Thus, it's time for health plans to rewrite their PBM contracts and demand airtight contract terms that will ensure that PBMs pass through 100% of generic drug savings to plans. Only then will health plans be able to obtain dramatically lower prescription coverage costs," says Cahn.
Cahn urges all plan administrators and trustees to watch the video, gain an understanding of the PBM contract terms that are robbing their plans of generic drug savings, and verify that all such contract terms are present in their own PBM contracts. After doing so, plan administrators should conduct a PBM RFP, and demand entirely different generic drug contract terms.
Cahn also urges health plans to alter their RFP tactics to ensure plans achieve all generic drug savings. An already-released video identifies the fatal flaws made by most health plans and consulting firms in conducting PBM RFPs, and describes how to rectify those flaws. The video - in two parts - can be viewed at: (i) http://www. youtube. com/watch? v=H-4LJeyjR6E and (ii) http://www. youtube. com/watch? v=LpW3u5Tn4PE.
Pharmacy Benefit Consultants has also distributed a free internet video identifying other core contract terms that health plans must change to ensure lower prescription coverage costs. The video -- captioned: "How to Obtain an Airtight PBM Contract" -- can be found at the firm's website or at: http://www. youtube. com/watch? v=VvnT9hz9k2g.
Pharmacy Benefit Consultants has helped numerous entities dramatically decrease their prescription coverage costs by redrafting their PBM contracts and conducting entirely different PBM RFPs. The consulting firm's clients include: Fortune 500 and smaller corporations, international and local unions, and business and union consortiums, as well as insurance companies.
For more information about Pharmacy Benefit Consultants, go to the firm website at: http://www. PharmacyBenefitConsultants. com, or contact Pharmacy Benefit Consultants' President, Linda Cahn, at: 973 975-0900.
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