The Art Of And Science Of Trend Management - Part III

As we continue our discussion on Trend Management, you may remember there are three components of Trend Management that affect the net cost of your pharmacy benefit - Mix, the specific drugs used in treatment; Use, the quantity of ingredients prescribed; and Channel, the source through which the drugs are purchased. In the last edition of Keeping Current, we focused on Use. This quarter we will take a closer look at the Channel.

As illustrated in the figure, Channel refers to the methods of delivering the prescriptions to the member. The four components of Channel are: (1) network design; (2) formulary design; (3) specialty; and, (4) home delivery. These components, when properly managed, create cost - savings measures that are realized by both the plan sponsor and the member.

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Keeping Current

Your source of information about the Keenan Pharmacy Purchasing Coalition (KPPC). In this and upcoming issues, we will be providing you with:
  • solutions for improving pharmacy benefit performance
  • items that may be of interest to your employees to pass along
  • information on trends and innovations in pharmacy benefits
We hope you enjoy Keeping Current and we invite you to send us your comments and suggestions on what you'd like to see. You can reach us at kppc@keenan.com
Contact:

Keenan & Associates
P.O. Box 4328
Torrance, CA 90510
800.654.8109

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