Benefits September 13, 2006

PBM Users Demand Drug Rebates be Passed Along

September 13, 2006 (PLANSPONSOR.com) - A new survey of benefits officials found that more than half use pharmacy benefit managers (PBM) to administer their prescription drug offering and a majority of those require the PBM to pass along all drugmaker rebates.
Reported by

The Brookfield, Wisconsin-based International Foundation of Employee Benefit Plans found that 58% of those surveyed go the PBM route for their drug offerings and 69% of those demand the service provider pass along all manufacturer rebates, discounts, fees and other payments.

Not only that, but 63% include financial and performance guarantees in their PBM contracts and a similar amount require an unrestricted right to audit PBMs.

According to the poll, the most popular prescription drug cost-cutting measures are:

  • Mail-order drug services (87%)
  • Drug formularies (79%)
  • Mandating or promoting generic drug use (79%)
  • A system of three or more tiers for cost-sharing devices such as deductibles, coinsurance and co-payments (76%).

Of respondents using PBMs or other vendors:

  • 89% are satisfied or very satisfied with their current service provider.
  • 12% are in the process of choosing a new provider, and
  • 14% plan to change vendors within the next 12 months.

The survey collected information from 163 US respondents. The results include seven sample request for proposals (RFPs) and one sample vendor selection tool.

More information is at www.ifebp.org/surveys .

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