One of the biggest cost drivers with the increasing cost of health care is the cost of prescription drugs. I’ve had a couple conversations recently with Zach Jones from ScriptSourcing, and they seem to have a really interesting approach to reduce costs for self-funded health plans. Zach was kind enough to answer a few questions. Hope you enjoy the quick read.
PM: Can you tell me a little bit about ScriptSourcing?
ZJ: ScriptSourcing was born out of necessity in 2013. Gary Becker is a 3 decade veteran to the employee benefits industry, and he has a strong passion and understanding of true risk management. The health plans’ biggest issue is controlling high cost drug spend, and it’s the fastest growing segment of the supply chain.
We offer a risk monitoring solution in that we proactively identify high cost specialty and maintenance name brand drugs, and then engage members to offer them $0 copays and substantial savings to the health plan through our ability to source the same meds through alternative methods.
PM: Can you tell me about some of your alternate methods?
ZJ: We utilize many solutions, but we have 3 that are most common. We have a network of international pharmacies in which have a mail order program. We also know how to navigate the web of foundations, charities, and grants available to get medications directly from the manufacturers for little or no cost. Lastly, we administer a pharmacy tourism program in which we send a member abroad to get their medications.
PM: What is the profile of the employers that can utilize your services?
ZJ: Self-funded employers who are looking to control their Rx spend.
PM: Is there any minimum size of employer?
PM: What do you charge for your services?
ZJ: We offer a performance-based model. The group only pays when they utilize our solutions. They keep 75% of the savings.
PM: At one point you mentioned that this solution doesn’t have to upset the existing brokerage or pharmacy benefits management relationships that are already in place. Can you expand on this a bit?
ZJ: We can work alongside any PBM. The group doesn’t have to change anything to make our solution available. We have preferred PBM vendors that we work with, however a group can keep all existing relationships in place.
PM: Is it a requirement that your solution begin on plan anniversary?
PM: It seems like ANY employer that is currently self-funded for their health plan could start working with ScriptSourcing TODAY for free and possibly start reducing their pharmacy costs. Is that right?
PM: This is great stuff. Last question – do you have a case study you can share with us?
ZJ: The end of this ebook has a case study on a 1200 employee municipality.
Zach sent me his e-book, and the case study shows 1 month of savings totaling $63,385 on drugs like Spiriva, Nexium, Otezla, Crestor, Kuvan, and Humira injections.
Many thanks to Zach for taking the time to answer some questions.
For me, one of the coolest things about the ScriptSourcing program is how easy it is to implement. They are basically a solution that can be added on to any self-funded health plan at any time without disrupting the plan’s PBM, consulting, or other relationships, and they only get paid if they can save the plan money.
If you would like to talk about this or other creative ways to reduce health care costs, give us a call at 866-724-0008 or click the link below.