Strong 2020 outlook for Prescription Discount Cards: maximize the opportunity with your PBM


Friday, February 14, 2020 | By Rod McKinney, Vice President

Strong 2020 outlook for Prescription Discount Cards: maximize the opportunity with your PBM

Prescription Discount Card companies (also called Drug Discount Cards or Cash Cards) are often founded because socially conscious businesspeople set out to help make costly medications more accessible for the economically vulnerable. And, as complex as the prescription drug system is in the US, they have made impressive headway. Prescription Discount Cards have evolved over the last couple of decades to play an important—and growing—role in supporting increased healthcare stability for millions by providing drug price and channel transparency along with access to PBM-negotiated drug discounts to the uninsured and under-insured. 

In 2018, 67.9M non-elderly Americans were either uninsured or underinsured; up from 63.7M in 2016[i]. This upward trend suggests that services like Prescription Discount Cards, which offer instant, easy-to-access price relief to these populations, could experience an increase in demand.

While conditions may be right for Prescription Discount Card companies to gain new customers, they can only do this if they can identify and connect with those customers. This requires maximizing available marketing and outreach dollars through stable cash flow and optimal revenues. The PBMs you choose to work with can greatly impact your success in these areas.  If membership growth is a priority, here are three points to consider when evaluating a pharmacy benefit management partner:

  1. Work with a PBM who offers a transparent business model to ensure a clear picture of revenue potential for you. SS&C Health discloses fees and prices to you at the point of sale processing, and our reimbursement rates consist of a pass-through of the actual pharmacy rate pricing.
  2. Work with a partner who is able to remit frequently, regularly and reliably to stabilize and increase your cash flow so you can commit to more aggressive outreach (marketing) programs. Our high claims volume allows us to offer weekly payment cycles.
  3. Look for a PBM partner who is not interested in driving customers to any particular mail-order business or brick and mortar store.  Vast, nationwide networks are vital, and lots of PBMs have them.  But, a PBM with an expansive, Channel Agnostic network increases the chances that your customers will always receive the best possible option for filling their script, which means they reach for your card more often.

There is great opportunity for Prescription Discount Card marketers to grow in 2020. Learn how SS&C Health can help you win and keep more customers. Download our brochure, or contact us today.

 

 

[1] TABLES — Health Insurance Coverage Eight Years After the ACA: Fewer Uninsured Americans and Shorter Coverage Gaps, But More Underinsured (Table 2), Accessed January 28, 2020.



Healthcare, Regulation


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