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Pharmacy Benefit Consultants Distributes Free Internet Video To Help Corporate & Union & Govt Health Plans Dramatically Decrease Their Rx Coverage Cos
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Morristown, New Jersey (PRWEB) February 5, 2008 -- Pharmacy Benefit Consultants, a nationwide consulting firm, today urged all corporate and union and government health plans to radically change their method of conducting PBM RFPs. "RFPs are the single best method to dramatically decrease prescription coverage costs. But health plans must change the way they conduct RFPs - and use the RFP's leverage to extract binding contract terms - if RFPs are to decrease plans' costs," said Linda Cahn, president of the nationwide consulting firm.
To assist health plans in changing their RFP strategy, Pharmacy Benefit Consultants is distributing a free two-part video, captioned: "How to Conduct A Successful PBM RFP". The video describes the seven flaws plaguing virtually all PBM RFPs. It also explains how every health plan should alter the structure of its RFP to guarantee decreased prescription costs. Part I of the video can be viewed by clicking on the attached YouTube site or going to: http://www.youtube.com/watch?v=H-4LJeyjR6E. Part II of the video can be viewed by going to: http://www.youtube.com/watch?v=LpW3u5Tn4PE
"Consulting firms are consistently failing their health plan clients," explains Linda Cahn. "Rather than forcing PBMs to accept binding contract terms during the RFP that will ensure lower costs, consulting firms are relying on PBMs' promises and projections to select a PBM Finalist and entirely ignoring the PBM contract, which is the only determinant of clients' costs."
Illustrating consulting firms' failure to negotiate contracts during RFPs, Cahn points to a recent Web Seminar poll, which showed that more than 80% of all attendees who had previously conducted PBM RFPs had never discussed any contract terms during their RFPs.
"Not surprisingly," said Cahn, "when RFPs are over, the promises made by PBMs almost never materialize into the contract that is executed. Alternatively, many health plans conclude their RFPs, begin receiving benefits from a new PBM, but never execute any contract at all because the plans can't get their PBMs to provide the terms that were promised during RFPs."
"Either way, RFPs turn out to be an utter waste of time and resources, and plans are left with ever-increasing prescription coverage costs," said Cahn.
"Thus, it's time for health plans to insist that their consulting firms use the RFP to achieve the three tasks that matter most before selecting a PBM Finalist: drafting, and negotiating and finalizing an executed PBM contract with entirely different contract terms. Only then will health plans obtain dramatically lower costs."
Pharmacy Benefit Consultants' video details how every health plan should restructure its RFP to extract a far better PBM contract, and identifies certain contract terms that must be included in every PBM contract that is negotiated.
For more information on how to conduct better PBM RFPs and write airtight PBM contracts, visit Pharmacy Benefit Consultants' website at: www.PharmacyBenefitConsultants.com or contact Pharmacy Benefit Consultants' President, Linda Cahn, at: 973 975-0900.
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This press release has been reprinted from PRWEB per the terms and conditions of the copyright notice.
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