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"Now prove to an insurer/PBM that this type of packaging saves more than it costs (e.g. improved compliance) and they will come knocking on your door." PBMs do
by pcurve 12y ago
"Now prove to an insurer/PBM that this type of packaging saves more than it costs (e.g. improved compliance) and they will come knocking on your door."
PBMs don't have same sensitivity to costs and compliance as insurance companies do. Drug adherence, comparative effectiveness, utilization review, all make good sales pitch, but PBMs ultimately profit more from higher drug utilization, narrow-network, generics, formulary, rebate, and home delivery. PBMs just have to pretend they're managing cost effectively on behalf of payors.
He basically needs to convince the payors (ie customers of insurance companies) that this will improve adherence, resulting in lower costs. Large health plans such as UHG, Aetna, just like PBMs, make money off of sicker people and higher utilization on the long run. Anything that improves health is existential threat to them.
He will need to partner up with boutique PBMs or insurance companies for trial runs and prove its effectiveness, and scale up. Perhaps start with specialty meds.
Ultimate goal is to get the largest payor involved (Medicaid and Medicare) and get their backing. They have the most to gain from this.
Another problem he faces is this: Mail-order PBMs already have sophisticated automatic dispensing facilities. Yes, much of their machines are designed to fill white pill-bottles, but it won't take that much investment to make daily packs like this, and do it at lower labor cost and higher accuracy.
- refurb 12y agoPBMs ultimately profit more from higher drug utilization PBMs do make most of their money based on drug volume. That said, it's not unusual for a payer to hold a PBM to certain financial goals.