PBM Questions and Answers
As part of the ongoing PBM sourcing initiative, we have compiled some frequently asked questions and answers.
1. Will I have the same flexibility in my plan design going through Corporate United?
Yes. The Corporate United sourcing initiative will not dictate plan design, and each participating member will maintain the ability to develop their own plan design(s) for their organization.
2. Can I retain my broker or consultant if I utilize the Corporate United PBM agreement?
Yes. The Corporate United process is designed to create and leverage the knowledge and covered lives resident in our group to drive more value out of the sourcing process. This does not preclude the involvement of our members' third parties in the process.
3. Why use Corporate United versus my existing program?
Group leverage and knowledge. The buying leverage Corporate United's group brings to the market will result in larger discounts, lower dispensing fees, higher rebates, lower administrative fees, higher performance standards and more dedicated services. Additionally, your organization will have access to the abundance of category expertise and market intelligence the participants on the sourcing committee represent.
4. Is it the right time to be going to market?
Yes. The Corporate United agreement expires at the end of December 2010 and our research indicates that this is an excellent time to seek improvements to the existing contract. We are confident that our group has the potential to achieve savings of over 10%, while improving the service levels associated with our current agreement. Several major suppliers in this space have already reached out to Corporate United expressing a desire to compete for our members' business.
5. Carve-out vs. Carve-in?
Carve-out. Corporate United's solution is a carve-out, which we believe brings greater transparency to this category, ensuring better management of this spend and more attention from the supplier. While it changes the administration of the benefit, there are too many advantages to this approach to ignore. Furthermore, the sale of major in-house PBM businesses like Anthem-Wellpoint and others may make the option for carved-in business obsolete in the relatively near future.
6. Will our company's requirements be addressed in the award?
Yes. Each participating member will have the opportunity to contribute their unique requirements to Corporate United for inclusion in the process. The committee members will ultimately be responsible for making all of the key decisions in the process, including the awarded supplier.
Return to main PBM sourcing page