International Pharmacy Sourcing
The Challenge
The organization was facing a steep rise in the cost of specific maintenance medications that were essential for their workforce. Despite negotiating with their current PBM, the domestic prices for these brand-name drugs remained significantly higher than the global market average.
The IMPACT
These escalating costs were threatening the overall sustainability of the health plan, leading to discussions about removing certain drugs from the formulary. Leadership was concerned that this would place an undue financial burden on employees who relied on these medications.
The Strategy
JA implemented a voluntary international pharmacy sourcing program, allowing members to access the exact same brand-name medications from Tier-1 countries at a fraction of the domestic cost. We incentivized this path by waiving employee copays and providing concierge support.
THE OUtcome
The program significantly reduced the plan’s pharmacy spend while providing employees with a zero-cost alternative for their maintenance meds. This strategic shift preserved the plan’s integrity and demonstrated a commitment to innovative member access.
Things Employers Should Consider
International sourcing is a powerful tool for managing the high cost of brand-name drugs without restricting access. It requires a partner who can ensure clinical safety and provide a seamless experience for the employees to encourage participation. Employers should view this as a way to globalize their pharmacy strategy to take advantage of favorable pricing.