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Minnesota PBMs are Working to Reduce Prescription Drug Costs for Millions of Minnesotans

In 2019, PBMs helped to provide Minnesotans access to more than 56 million prescriptions. PBMs are the only members of the prescription drug supply chain that are working to lower drug costs. Over 10 years, PBMs will save Minnesota health plan sponsors, public programs, and patients nearly $19 billion on prescription drug costs.
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PBMs save Minnesotans: $9.9 Billion on commercial/private insurance, $8.0 Billion on Medicare Part D, $829 Million on MEDICAID. It is a total of $18.8 Billion.
Source: The Return on Investment (ROI) on PBM Services

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PBMs save patients and payers 40-50% on prescription drug and related medical costs, compared to what they would spend without PBMs.
Source: The Return on Investment (ROI) on PBM Services

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PBMs save patients an average of $962 per person, per year.
Source: The Return on Investment (ROI) on PBM Services

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PBMs Help Facilitate Patients Access to Safe, High-quality Drugs through Formularies

What is a prescription drug formulary?

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A prescription drug formulary is a list of drugs that a health plan covers under its pharmacy benefit. Prescription drug formularies are managed by Pharmacy and Therapeutics Committees (P&T Committees), which are comprised of a diverse group of healthcare professionals and experts including physicians, pharmacists, nurses, and clinical specialists. The P&T Committee provides an evaluative, educational, and advisory service to health plan sponsors to promote the safe, appropriate, and cost-effective use of prescription drugs in patient care. Health plan sponsors utilize the formulary recommendations and medication-use policies developed by a P&T Committee to optimize care for Minnesota patients and ensure access to safe, high-quality and cost-effective drugs. Importantly, and reflecting a requirement of PBM accreditation, P&T Committee members must disclose and appropriately handle any conflicts of interest.

Formularies are kept up to date by this panel of experts that review the latest medical literature, FDA-approved prescribing, and safety data.

There are many benefits to prescription drug formularies for Minnesota patients. For example, formularies can help patients avoid receiving unsafe medications that may not interact well with other medications, prevent expensive or ineffective drugs from being prescribed to patients, and improve patient outcomes by reducing physician or ER visits.

During COVID-19

PBMs are working to help over 5 million Minnesotans safely access affordable prescription medications.

In the COVID-19 pandemic, PBMs are working with health plans, prescribers, drug manufacturers, pharmacists, and federal and state agencies to make sure patients in Minnesota continue to receive their prescription drugs in a safe, efficient and affordable manner.

To mitigate the adverse effects that COVID-19 has on patients and communities across the state PBMs are:

  • Working with pharmacy partners to assist with mailing prescriptions.
  • Temporarily waiving requirements for pharmacies to obtain proof-of-receipt signatures from patients, unless required by law.

PBMs are also leading collaborative efforts with industry stakeholders, including pharmaceutical manufacturers, pharmacies, hospitals and health plans, to minimize the potential for a shortage of any drug for Minnesotans. If patients encounter a disruption for a specific medication, PBMs stand ready to work with both prescribers and health plans to identify covered and acceptable therapeutic substitutes.

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Read more about how PBMs are #OnYourRxSideMN

PBMs serve a critical role in the health care system: advocating for our patients and payers.

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Better Access. Better Cost. Better Health.

PBMs are advocates for Minnesotans in the health care system, working to lower out-of-control prescription drug prices for patients, and acting as your care coordinators to keep you safe and healthy.
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