PBM Sourcing Initiative

Download the complete PBM sourcing initiative brochure

Few things have the ability to impact a company's bottom line as dramatically as the cost of employee benefits.  As part of the world's largest virtual organization, Corporate United members have access to a leveraged pharmacy benefits management (PBM) agreement, which provides a combination of aggressive pricing and clinical programs designed to aid companies in a proactive approach to containing the rising cost of this valuable benefit.

Corporate United constantly monitors the pharmacy benefits industry to ensure our agreement meets the changing needs of our membership. To that end, we are preparing to source our existing PBM agreement with Medco Health Solutions, which expires at the end of 2010.

We are engaging in this initiative now for a  number of important reasons:
  • Within the next three years, more than $35 billion in brand name drugs will lose patent protection, which means that pharmacy benefits managers and employers have the ability to take advantage of brand-to-generic conversions while protecting against "last-minute" price hikes on expiring brand medication.
  • Pharmacy benefits managers make the highest profit margin on generic medications when they are dispensed through pharmacy benefits manager-owned facilities, and given many employers are approaching 70% or greater on generic dispensing rates, pricing offers are becoming very attractive in the multi-employer leveraged PBM purchasing arena.
  • Average wholesale price (AWP) litigation, albeit economically neutral to employers, will radically change employer-PBM contracting in the near future.
PBM Questions and Answers
Six questions and answers that further explain Corporate United's PBM sourcing initiative.

Watch the Webinar to Learn More
Corporate United conducted webinars for human resources professionals to learn more about the current state of the pharmacy benefits industry, details regarding the timeliness of this sourcing initiative and specifics surrounding our sourcing strategy.  The webinars were hosted by Corporate United Category Manager and PBM industry expert, Christopher Goff.



To request the full webinar on DVD, contact Kim Busser at 216.325.0411 or kbusser@corporateunited.com.

"Corporate United has helped drive significant costs out of our operation through their innovative model. In our first year as a member in Corporate United we realized a six-figure savings that went right to the bottom line. CU has proven themselves as a leader in group purchasing."