Monday, November 28, 2005

The real deal: Mail-order vs. retail



For years, mail service for prescription drugs has been pitched as a way for employers to save money by providing deeper discounts, central control, the ability to switch to less expensive and equally effective drugs, and a convenience to members. The reality is that using mail service – as opposed to retail fulfillment – may or may not be a good deal for employers.

In this installment of the Pharmacy Benefit Podcast, Brian Bullock and Rob Shelley of The Burchfield Group discuss mail-order versus retail, and what employers need to know to provide the best pharmacy benefit plans for their companies and their employees.

Brian and Rob talk about finding balance among benefit design, convenience and cost-saving issues. Employers also need to provide incentives for employees to use mail-order services without reducing the value mail-order services provide for the employer. Employers also must understand that not all drugs are cheaper via mail service, and they need to determine their specific break-even point to ensure the best use of mail-order service.

As always, feel free to e-mail us your comments and questions. We’ll work your comments and our responses into an upcoming show. Send an e-mail to info@burchfieldgroup.com or call 651-389-5640.

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