Employers pushing their PBMs for revenue info, rebate funds.(pharmacy benefit manager, University of Minnesota )

Business Insurance, September, 2005 by Pallarito, Karen

Byline: KAREN PALLARITO When the University of Minnesota began searching for a pharmacy benefit manager to oversee nearly $35 million in annual prescription drug spending that it had carved out from its health plan administrators, the self-insured institution avoided using the same old boilerplate.

The proposed contract didn't dwell, for instance, on the discount off of average wholesale prices that PBMs pay to the pharmacies. University officials had a bigger goal in mind: They wanted to expose the financial incentives that might cause a PBM to, say, favor one drug over another. "We wanted to understand every revenue source they have,'' said Stephen W. Schondelmeyer, head of the university's Department of Pharmaceutical Care and Health Systems in...

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