Pharmacists United for Truth and Transparency
Pharmacists United for Truth and Transparency is a growing coalition of independent pharmacists and pharmacy owners dedicated to exposing widespread abuse and manipulation by pharmacy benefit managers (PBMs).
PUTT’s former President Dave Marley outlines the importance of a new tool to help employers lower the costs of prescription drugs and hold pharmacy benefits managers (PBMs) accountable on the March 20, 2013 edition of the Pharmacy Podcast with Todd Eury.
Contracts with pharmacy benefits managers (PBMs) are often riddled with language that makes fee structures confusing and jargon that makes it difficult to discern what plan sponsors are actually paying for.
For many PBMs, the more obscurity and confusion in the contract negotiating process the better. The difficult process of ironing out a contract often forces employers to hire benefits consultants and specialists who may not always be working in the best interest of the employer.
Now, PUTT has released a comprehensive tool to educate employers and help them negotiate contracts. Read an executive summary here.
PUTT produced the tool kit with research contributions from the Harrison Institute for Public Law at Georgetown University. The Institute has 40 years of experience assisting nonprofit organizations with their legal and policy needs.
By educating employers to negotiate transparent contracts, we can help reduce employer costs and reform the PBM market that has become rife with abuse.
For the complete tool, please email info@truthrx.org.
Employers looking for a one-stop-shop to learn about how to negotiate transparent contracts with PBMs to ultimately reduce the cost of prescription drugs have a new, comprehensive tool. PUTT’s new Contract Negotiating Tool for employers was produced with research contributions from the Harrison Institute for Public Law at Georgetown University, which has 40 years of experience assisting nonprofit organizations with their legal and policy needs.
The executive summary is available here, for the comprehensive tool please email info@truthrx.org.
PUTT President Dave Marley is featured on the Pharmacy Podcast discussing the newly formed RxAlly and controversy over “preferred networks.”
PUTT President Dave Marley offers his take on new data from the National Community Pharmacists Association in a new blog post. Read the post on BenefitsPro.com and below…
Lack of PBM transparency harms employers
It’s not uncommon to find pharmacists who feel frustrated with abusive practices and the complete lack of transparency from pharmacy benefits managers, the third-party administrators of prescription drug programs.
But abuse by PBMs of local pharmacies is not only bad for the drug store on the corner. It’s also a big problem for many companies. PBM abuse and fraud can impact the bottom line and puts more pressure on the benefits managers who work with PBMs on a daily basis to make sure they are not being exploited.
It’s not uncommon to find pharmacists who feel frustrated with abusive practices and the complete lack of transparency from pharmacy benefits managers, the third-party administrators of prescription drug programs.
But abuse by PBMs of local pharmacies is not only bad for the drug store on the corner. It’s also a big problem for many companies. PBM abuse and fraud can impact the bottom line and puts more pressure on the benefits managers who work with PBMs on a daily basis to make sure they are not being exploited.
A new report from the National Community Pharmacists Association recently exposed the challenges many community pharmacists face in dealing with large PBMs. The poll of more than 350 community pharmacists showed that a majority of pharmacists feel that:
Working with PBMs has historically been tricky for independent pharmacies. Now, it’s becoming increasingly obvious that PBMs are using some of the same tricks on large employers as they are on ‘mom-and-pop’ pharmacies. Large PBMs are not only making it harder for independent pharmacy patients to receive the quality of care they deserve, they’re also adding to their profits at the employers’ expense by using a tactic called “spread pricing.”
Here’s how it works: PBMs use intentionally vague terminology when billing employers, thereby keeping them unaware as to the real cost of a drug. And while employers generally assume they’re paying the same amount as what the PBM gives the pharmacy plus a small administrative fee, PBMs are notorious for marking up the drug price and pocketing the difference.
For benefits managers to ensure their company is not spending too much on prescription medications and contributing to a PBM scheme, it’s important to ask the PBM to provide an explanation of its reimbursement terms with network pharmacies. Doing so will help the employer avoid getting hit with a price mark-up. As the costs of prescription medications continue to increase, a leading cause of the sky-high prices is the profiteering of pharmacy benefit managers.
By helping to ensure PBM transparency, HR professionals can help their own companies and help keep drug prices down across the board.
