HR Policy Association Certifies 13 Pharmacy Benefit Managers Willing to Provide Full Transparency in Drug Contracting in 2008
These PBMs have committed to meet the HR Policy Association PharmaceuticalCoalition's standards, which provide employers with the most rigorous level ofdrug purchasing transparency available in the marketplace. Each year, throughthe Coalition's Transparency in Pharmaceutical Purchasing Solutions (TIPPS)initiative, employers formulate a uniform definition of transparency andannually certify organizations that agree to TIPPS standards.
The Coalition, chaired by Sidney C. Banwart, Caterpillar Inc. VicePresident, with administrative responsibility for the Human Services Division,is made up of more than 55 large employers who purchase pharmacy benefits formore than five million Americans. "We are thrilled at the progress we've madewith the TIPPS program. The number of PBMs that have recommitted as well asnew PBMs that have agreed to do business in a fully transparent manner proveshow employers can improve the health care market by working together. In onlythree years, the Association has moved from three organizations willing tomeet our standards, to 13 today, even as the standards become more rigorous,"said Banwart.
"TIPPS proves that employers and companies that provide health careservices working together can bring greater transparency and value to ourhealth care system. Companies that have moved or are considering moving to aTIPPS arrangement, expect to save money. This is no small feat in today'shealth care marketplace," said Jeffrey C. McGuiness, President of HR PolicyAssociation.
The growing number and breadth of organizations within the PBM marketwilling to meet the TIPPS standards, demonstrates that the call fortransparency is being heard. The TIPPS standards promote contracting thatmakes it easier for employers, their beneficiaries and dependents tounderstand the true price of a drug.
TIPPS standards are designed to ensure pharmacy benefit services arestructured to encourage the use of the most cost-effective, clinicallyappropriate drug available. The Coalition engaged Hewitt Associates, a globalhuman resources services company, to define the standards, which includeproviding Coalition members:
HR Policy Association is a public policy advocacy organizationrepresenting the senior human resource executives of more than 250 leadingemployers doing business in the United States. Collectively, its membersemploy over 12 percent of the U.S. private sector workforce or some 19 millionAmericans. Due to extreme concern over skyrocketing health care costs in theUnited States and deficiencies in efficiency and quality, the Association hasbeen working through its public policy agenda and market reform initiatives toaddress the problems that plague our nation's health care system.Transparency in Pharmaceutical Purchasing Standards and TIPPS are servicemarks of Health Care Policy Roundtable, LLC.
Contact: Marisa L. MiltonAetna Pharmacy Management BlueCross and Blue Shield of Alabama CVS Caremark Catalyst Rx, A HealthExtras Company CIGNA Pharmacy Management Express Scripts Humana Pharmacy Medco Health Solutions, Inc. Prime Therapeutics LLC RESTAT LLC SXC Health Solutions, Inc. Walgreens Health Initiatives WellPoint NextRx
SOURCE HR Policy Association
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