Why a Custom Pharmacy Coalition Solution Could Be Right For You
By Kiley Ward, President of CoeoRx
Unlike other healthcare contracts, which typically come up for renewal annually, pharmacy contracts often linger for years without updates. This can leave employer groups stuck in outdated, suboptimal deals that fail to take advantage of the latest cost-saving strategies. The thought of moving contracts can seem like a daunting task, but a custom pharmacy coalition solution might be the key to unlocking significant benefits without the headaches.
Understanding Pharmacy Coalitions
A pharmacy coalition is a collective of brokers, third-party administrators (TPAs), or groups that pool their purchasing power—or “lives”—to negotiate better pharmacy pricing and contract terms. By aggregating the size and scale of their members, these coalitions can access deals and discounts that would be unattainable for individual groups. This collective approach ensures members benefit from lower drug prices, improved contract terms and enhanced support services.
Advantages of Customization
Customization is key when it comes to pharmacy coalitions. A one-size-fits-all approach rarely addresses the unique needs of every organization. Here’s why opting for a custom solution can be a game-changer:
Tailored Support Components: Every organization has different strengths and needs. For instance, you might have consulting covered but need help with the service component. A custom coalition can offer specific support where you need it most, ensuring you get the exact assistance required to optimize your pharmacy benefits strategy.
Private-Labeling Opportunities: For brokers and TPAs, private-labeling a coalition offers the benefits of building a coalition without the associated headaches. This means you can leverage a pre-established network, gaining access to superior pricing and contract terms, while presenting the solution under your brand. It’s an excellent way to expand your service offerings and enhance client relationships without starting from scratch. Furthermore, this strategy allows you to effectively compete with larger brokerages that have their own in-house pharmacy divisions. By private-labeling, you provide a comparable level of service and expertise, mirroring the in- house capabilities of larger competitors but without the operational complexities and overhead. And—the coalition handles service and implementation for you! This includes annual reconciliations to verify that PBMs adhere to pricing commitments, rebate agreements and other contract terms. The coalition’s clinical team also ensures that clinical decisions align with best practices and cost-effective strategies. This allows brokers and TPAs to focus on their core responsibilities without needing to become pharmacy experts themselves.
Flexible Service Options: Custom coalitions provide the flexibility to choose specific services that align with your goals. Whether you need enhanced clinical support, data analytics, or comprehensive implementation services, a custom coalition can adapt to your needs, ensuring you receive the targeted assistance that you need to keep your clients happy.
Access to Multiple PBM Options: Some coalitions limit their PBM partnerships to the big three, while others work with mid-market PBMs that allow for more contract and cost-containment customization. A custom solution enables you to select from a wider range of PBMs, ensuring you find the best fit for your organization’s specific needs.
A pharmacy coalition solution is not just about accessing better pricing. It’s about leveraging collective power to achieve comprehensive, ongoing benefits. From enhanced negotiating power and contract management to reduced administrative burdens and improved service delivery, the advantages are clear. By aligning with a coalition that offers customization, you can ensure that your pharmacy benefit strategy is both cost-effective, robust and exactly what you need to grow your business.
Editor’s Note
CoeoRx is dedicated to providing brokers with top-notch pharmacy solutions. Whatever your needs, we offer tailored services to ensure optimal outcomes for you and your clients. Our exceptional pricing and comprehensive support set us apart in the industry, making us the preferred partner for those seeking excellence in pharmacy benefits management.
