This webinar features a New Jersey state official who will describe how the state implemented a successful reverse auction model to procure a pharmacy benefit manager (PBM) – resulting in projected savings of $2.5 billion in reduced prescription drug spending from 2017 to 2022. New Jersey was the first state to enact legislation enabling reverse auctions for its 800,000 public employees, followed by Maryland.
The reverse auction model allows public plans to reduce costs by negotiating higher-value contracts with PBMs without reducing drug benefits. Unlike traditional procurement models in which it can be hard to accurately compare bids, the reverse auction model creates a transparent bidding process. Bidding is managed via a vendor’s technology platform that enables each PBM to see how its bid compares against the highest bid in an anonymous fashion, and allows bidders to improve their offers over several rounds of bidding. Once contracting is complete, the technology platform also enables ongoing PBM oversight to reduce unnecessary spending.
Trish Riley, NASHP Executive Director
Christin Deacon, JD, Assistant Director of Health Benefit Operations and Policy and Planning, New Jersey Division of Pensions and Benefits, Department of Treasury
https://www.nashp.org/wp-content/uploads/2019/06/NASHP-Logo.png00NASHP Staffhttps://www.nashp.org/wp-content/uploads/2019/06/NASHP-Logo.pngNASHP Staff2020-07-14 14:09:132020-08-24 19:36:50Webinar: How States Can Control Pharmacy Benefit Manager Contract Costs through Reverse Auctions
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