Friday, January 24, 2014

The Pharmacy Benefits Manager RFP; 7 Contract Tips for a Cost Efficient Drug Benefit Design

  1. Skip the RFP as it is largely a waste of time and money. Instead draft an airtight FIDUCIARY contract and put it out for bid
  2. Acquire "reference pricing" AND relentlessly measure cost performance 
  3. Write meaningful financial and performance guarantees 
  4. Mandate full transparency and complete audit rights 
  5. Create market check and carve-out rights that currently don't exist in almost all PBM contracts 
  6. Shorten contracts (to 2 years) and include favorable contract termination rights 
  7. Eliminate rebate and/or savings program loopholes

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