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Drivers of Change in Pharmacy Benefit Management | Page 1

Published Online: June 20, 2014
Jan Berger, MD, MJ; Louis L. Brunetti, MD; Robert DaSilva, RPh; Shareh O. Ghani, MD; Kevin Hirsch, MD; Mumtaz Ibrahim, MD; Michael Kobernick, MD, MS, FAAEM, FAAFP; Robin J. Richardson, RPh; Scott Schnuckle; Justin Weiss, PharmD; and Richard Bankowitz, MD, MBA, FACP
The Affordable Care Act (ACA) and increasing regulation has had a significant impact on healthcare delivery. Changes continue to unfold across all segments of the healthcare continuum. In many areas, regulation and guidance have been silent or vague on pharmacy care. The purpose of this study is to identify the drivers of change in pharmacy benefit management in the next 18 to 36 months and articulate strategies for plan sponsors to adapt effectively to these drivers and continue to provide economically sustainable drug benefit programs.

METHODS

A qualitative research study was conducted in January 2013 with pharmacy leaders who hold executive-level positions in US managed care organizations (MCOs) and other healthcare alliances. The 11 respondents provided written answers to research questions about:

  • Impact of reform to date on medical services, pharmacy, and health and wellness services;


  • Impact of medical loss ratio (MLR) requirements on pharmacy;


  • Opportunities that accountable care organizations (ACOs) can offer to improve the practice of managed care pharmacy;


  • Impact of health insurance exchanges (HIExs) on pharmacy benefit management; and


  • Action steps for drug benefit plan sponsors to ensure that they can provide drug benefit programs in 2014 and beyond.


The written responses to the research questions were synthesized, reflecting differences of opinion, uncertainty of future events, and unknown outcomes associated with changes in the marketplace. Respondents reviewed the research findings together via conference calls in the second phase of the study to arrive at a consensus on the study findings.

DETAILED FINDINGS

This section discusses the detailed research findings. Verbatim comments of respondents are italicized.

Role of Pharmacy Evolves, Increases in Importance

The role of pharmacy will become more prominent in care delivery as healthcare reform unfolds.

“Pharmacy will be forced out of its silo and into the care team.”

Pharmacists will be tapped for their cognitive expertise and become integral members of patient care teams. With greater accountability for patient outcomes, providers will increasingly rely on pharmacy for patient-specific medication adherence information (particularly for chronic and complex conditions), identifying and managing gaps in care, and providing medication reconciliation at care transitions.

Successful ACO models demand more integration—of data, incentives, care plans, and healthcare services. Integration of medical and pharmacy data will be essential.

“The time has come for the physician community to stand up and be counted. We have always asked for more control of how we practice medicine. The ACO concept offers a unique opportunity for us to ensure that the care we deliver is high quality with better outcomes and at reduced costs, while enhancing the patient experience. This means that physicians can no longer be agnostic to costs whether they are in the medical arena or pharmaceutical arena. The physician needs to leverage both clinical and technological tools to enhance the clinical enterprise. The days of serving in isolation are over. We need to be interlinked together and use the infrastructure that the ACO offers in offering care management to our patients.”

Healthcare reform presents opportunities to elevate the role of managed care pharmacy by showcasing its best practices and bringing them to the medical side of healthcare.

“The discipline and effectiveness of drug pricing strategies on the pharmacy benefit side of the business will continue to migrate to the undisciplined management strategies under medical benefits. Pricing, preferred drug strategies, rebates, and utilization management are much more effective on the pharmacy benefit. I anticipate that health plans will begin to apply the pharmacy benefit strategies on those drugs managed on the medical benefit.”

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“I believe that pharmacy already has a quality reputation. As most attention is not currently focused on pharmacy, this is pharmacy’s opportunity to be proactive. As limits to patient cost sharing are implemented, pharmacy’s focus on helping programs/plans work within medical loss ratio requirement and within global budgets will be significant.”

Other emerging challenges include:

  • Growth in specialty drug expenditures triggered by higher prices, more therapeutic options, and growing utilization;


  • Member “churn” in and out of Medicaid and subsidized insurance plans; and


  • Quality being secondary to immediate demands of health reform implementation.


Drivers of Change in Pharmacy Benefit Management

In addition to the evolving role of the pharmacist, there are many other issues that will drive change in pharmacy benefit management as illustrated in the Figure. Drivers are listed in descending order of importance in each category.

Emerging Models of Care Integrate Pharmacy, Medical Care

The promise of fully integrated healthcare reform should translate to improved patient care with economic benefits for all stakeholders. The respondents commented on the growing impact of MLR requirements, ACOs, and HIExs. They believe that there will be continued pressure to reduce unnecessary administrative costs that could adversely affect MLR requirements, although pharmacy is not perceived as a huge percentage of overall cost. More costs of drug utilization management programs could be attributed to MLR if the quality management aspects of these types programs had stronger measurement and reporting to articulate their clinical value.

The role of pharmacy and pharmacists will become more prominent going forward. Physicians are, to varying degrees, beginning to appreciate that role. Clinicians working within integrated health systems already utilize pharmacy expertise to optimal or near-optimal capacity. The challenge remains with physicians practicing outside of truly integrated delivery systems, not only in regard to pharmacy but to overall care coordination. Further, there is a range of viewpoints about whether ACOs are an end point or simply an important step to transitioning to a future, yet-to-be-defined improved model.

PDF is available on the last page.

Issue: May/June 2014
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