As your partner in delivering pharmacy savings, we closely monitor the latest news impacting healthcare in our communities. By now, you may have heard about President Trump’s executive order on drug pricing.
Legislation and global events impacting drug pricing and supply chain are not new, and we have designed proactive strategy to address these developments for our clients for years. We monitor the marketplace and change our approach in real-time to benefit members and make sure they can access the most affordable drugs–even as the landscape changes. It’s one of our core values.
Candesa Pharmacy Solutions is led by Mona Chitre, PharmD, who has more than two decades of experience bringing market-leading pharmacy solutions to communities across the country. Candesa is part of a $6 billion family of companies that has been delivering health care services for more than 85 years across the country.
Here’s a quick summary of what we’ve seen in the news so far regarding the executive order:
Background and Details:
The United States funds and subsidizes pharmaceutical research and development for the world. Yet, according to the executive order, U.S. prices for brand name drugs are significantly higher than most countries. According to the order, the prices Americans pay for prescription drugs must align with the lowest prices paid in other developed nations.
As currently presented, the executive order is a voluntary program designed to achieve historically significant price reductions. It also implies that those who do not participate will be penalized but does not offer a framework for what that means.
Potential Impacts:
While the order was just announced and the implementation plan for it is unknown at this time, according to various media reports, and an industry brief from Price Waterhouse Cooper, the following are potential impacts:
- A complete overhaul of pricing models for the pharmaceutical industry, with implications across all Lines of Business.
- Changes to reimbursement with pharmacies and wholesale distributors.
- With PBMs and payers, the rebate model and contracted pricing are at risk. This represents a key part of the current business model of many PBMs.
- For providers, there could be impact on the 340B Drug Pricing Program.
At Candesa, we will continue to stay on top of any potential impacts as the executive order evolves. Our approach to pharmacy solutions was born out of decades of experience understanding the needs, opportunities and challenges businesses face today when it comes to decreasing pharmacy trend.
Learn more about how we are shining a light on opportunities to drive down pharmacy spend through Rx Concierge: