A primer on brand-name prescription drug contracting – Healthcare Economist

The title “A primer on brand name prescription drug contracting” was written by Kenney and Keast (2024) to provide valuable insights into pharmacy contracts within the healthcare ecosystem. The rise of Health Maintenance Organizations (HMOs) following the HMO Act of 1973 impacted pharmacy contracting significantly. Initially, pharmacy benefits were not standard in HMO programs, but some plans began offering prescription drug coverage to attract members. This led to the development of formulary programs and preferred drug lists with tiered copayments. Discounts are a crucial aspect of pharmacy contracting, with calculations involving factors such as contracted reimbursement amounts, out-of-pocket costs, and manufacturer rebates. Different types of contracts, such as purchase discount agreements, rebates, and value-based contracts, play essential roles in shaping pharmacy contracts today. For a comprehensive discussion, refer to the full article, which also delves into Medicaid best price considerations. To access the complete content, check out the article titled “A primer on brand name prescription drug contracting – Healthcare Economist.”