Tip of the Day: Updated info on collecting your AWP savings

On March 30, a District Court in Massachusetts made a final judgment to approve a class-action setlement involving First Databank and Medi-Span, two major publishers of drug pricing information.

The two firms were found to have inflated average wholesale prices (AWP) for some 400 brand-name drugs. AWP is the primary benchmark for most PBM discounts. Under the settlement, First Databank and Medi-Span agreed to roll-back the AWP on all drugs to a uniform 120% of the wholesale acquisition cost, effective Sept. 26.

With significant contract implications (and savings!) for benefits pros to consider, you can read a detailed summary of the ruling here and see EBN's coverage on taking advantage of PBM savings as a result.

Yay or Nay: Is the Wal-Mart, Caterpillar Rx benefit model better for employers?

Wal-Mart is expanding a pilot program that eliminates copays on generic drugs purchased at its stores to more employers.

The program already operates at the construction company Caterpillar, where employees who purchase generic prescription drugs at a Wal-Mart or Sam's Club pharmacy are waived the $5 copayment. Some see the program as a way to help employers reduce health care costs tied to prescription drugs by trimming the work they have to do pharmacy benefit managers.

“The easiest thing to do is look at the number the PBMs spit out,” said Todd Bisping, pharmacy benefits and informatics manager at Caterpillar, the Chicago Tribune reports. “As more and more companies realize we just can't blindly assume what's going on is best for us, they're going to start digging into it and find the same thing.”

Have you done the digging that Bisping mentioned? If so, what did you find? Will the Wal-Mart-Caterpillar model be a better one for employers and employees on a wider scale? Yay or nay?

Tip of the Day: Protect your AWP savings

Psst! PBMs don't want you to know about a class-action settlement involving prescription medicine pricing could result in drug-spend savings of 0.7% to 1.6% for plan sponsors. (Every penny helps these days, right?)

In a March EBN cover story, contributors Emil Kraft and Scott Rogers advice benefit managers about how some pharmacy benefit managers are attempting to reduce or eliminate the savings from the suit by changing pharmacy contracts. Don't lost out: Read the story here.