New 'playbook' helps employers navigate specialty drug costs

The Minnesota Health Action Group offers goals and actionable steps for all stakeholders in the drug supply chain.

The framework for the playbook has been adapted by the National Alliance of Healthcare Purchaser Coalitions and is available to member coalitions throughout the country. (Image Shutterstock)

Considering that the annual cost of specialty drugs to treat certain chronic conditions can exceed $100,000, the Minnesota Health Action Group has developed action plans that all stakeholders within the drug delivery chain can take to drive efficiency and transparency in the marketplace.

The group’s Specialty Drug Employer Playbook details what each stakeholder can do to advance the “5 Rights” for employers and consumers—right drug, right price, right place, right support and right data. The framework for the playbook, a cumulative effort by the Action Group’s “Guiding Coalition” of 40 members across the delivery chain, has been adapted by the National Alliance of Healthcare Purchaser Coalitions and is available to member coalitions throughout the country.

Related: Data and analytics bend specialty drug cost curve

The playbook lists four high-level goals that employers should expect for each stakeholder group—health plans, provider organizations, pharmacy benefits managers, specialty pharmacies and manufacturers. These high-level goals are followed by detailed action plans to achieve the goals—and scoring criteria that employers can use to measure how well each stakeholder is performing.

“Inaction is not an option,” says Carolyn Pare, president and CEO of the Minnesota Health Action Group. “For years, employers and consumers have been paying for things we don’t even know we’re paying for. This has to change.”

“With the Playbook, employers will now be better equipped to gain more control over specialty drug use and spend on behalf of their employees, which will ultimately contribute to stabilizing a very broken system,” Pare says.

The four high-level goals for health plans:

  1. Require submission of actual National Drug Codes (NDCs) and Healthcare Common Procedure Coding System (HCPCs), units, quantity and day’s supply by all providers in all settings.
  2.  Contract with providers to assure cost parity of all sites of care for the same drugs and services.
  3. Involve employers in key decisions that affect their overall costs.
  4. Align total cost of care (TCOC) and accountable care organization (ACO) provider contracts so practitioners select and/or administer high-value drugs.

Provider organization goals:

Pharmacy benefit manager goals:

Specialty pharmacy goals:

Manufacturer goals:

“Transparency means different things to different people,” Pare says. “And ultimately, we need to push beyond transparency to solutions that ensure employers and individual purchasers have access to the right drug, at the right price, at the right time, in the right setting, and that they have access to the right data.”

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