Here are four things to know.
1. Ten years ago, Caterpillar — a leading manufacturer of construction equipment — assessed its employee drug plan and estimated as much as one-fourth of its $150 million drug spending was wasted, according to the report.
2. Instead of using PBMs, the company created its own list of drugs to offer health plan members and negotiated deals with pharmacies. Caterpillar also promoted the use of generic drugs — instead of costly heartburn and cholesterol drugs — and also hired its own pharmacists and physicians.
3. Since implementing these changes, drug spending has dropped both per patient and per prescription. Caterpillar now saves $5 million to $10 million a year on cholesterol-lowering drugs alone, according to Todd Bisping, a global benefits manager at the company.
4. While the company still uses the OptumRX to process claims and get rebates, Caterpillar’s strategy fuels the recent claim that PBMs are a major source of high drug costs in the U.S., reports Bloomberg.
More articles on supply chain:
Lawmakers seek to accelerate approvals with Reauthorized Generic Drug User Fee Act
Physician avoids high cost of EpiPens with homemade device
4 latest FDA approvals
Becker’s 3rd Annual Fall Chief Pharmacy Officer Summit is the top tier event that the people leading the future of pharmacy convene. This 3-day event is built specifically for Chief Pharmacy Officers and senior pharmacy leaders. The sessions examine the workforce, financial and clinical priorities shaping pharmacy today. Becker’s is where candid discussions flourish and new ideas thrive. Becker's 3rd Annual Fall Chief Pharmacy Officer Summit
