The Hidden Costs of PBMs: How Aggregate Discount Guarantees Inflate Drug Prices. In episode 465 of Relentlessly Seeking Value, host Stacey Richter interviews Chris Crawford, CEO of RxSaveCard, about the inflated costs within the pharmacy benefits industry.
The discussion centers around a lawsuit involving J&J, highlighting how large PBMs can significantly overcharge for drugs that are available much cheaper through cash-pay options like Mark Cuban's Cost Plus Drugs.
Crawford explains how Aggregate Discount Guarantees, a common contracting mechanism, often fail to control spread pricing effectively and instead may lead to higher costs for plan sponsors and employees. The episode also covers how RxSaveCard can help employers and employees access these lower cash prices, circumventing the inflated costs from traditional PBMs.
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đź”— Show Notes with all mentioned links: https://cc-lnk.com/EP465
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07:12 EP365 with Scott Haas.
07:17 EP397 with Paul Holmes.
07:19 EP439 with Luke Slindee, PharmD.
07:20 EP379 with AJ Loiacono.
07:44 What is the Aggregate Discount Guarantee?
13:49 Why do the divergent list prices and the perverse incentives prevent the Aggregate Discount Guarantee from really limiting cost spread?
17:55 Why is it important for plan sponsors to check these drug cost prices, and how can employers check them?
23:56 What drives cost lower, and why does it change everything?
25:09 How does RxSaveCard work?
25:44 EP461 with Chris Crawford.
30:01 Do you need a PBM’s permission to use RxSaveCard?
30:37 How does it look for employers/employees to use the RxSaveCard?
32:39 EP356 with Ge Bai, PhD, CPA.
