In today’s day and age, getting sick is never easy. People have lost their jobs, and therefore, their capacity to buy medicines that may help them achieve health. The healthcare system in some countries don’t always cater to the ones who need it the most.
The worst part about some of the medicines sold in the market is that these aren’t always affordable. One piece can cost a lot. Hence, doctors have been telling their patients to opt for the generic brands because these can be a lot cheaper.
Billionaire Mark Cuban was very much aware of this need. That’s why he has officially launched his newest venture, Cost Plus Drugs. This is an online pharmacy that offers a variety of medicines at a fraction of the cost of the branded counterparts.
GNN reported on this and they talked about Cuban’s support for Texas radiologist Dr. Alex Oshymansky. The kind doctor started a public benefit company that has the ability to sell cheap pharmaceutical drugs to their clients. The launch of Cost Plus Drugs comes just weeks after the company’s pharmacy benefit manager (PBM) operation had been established. Their mission is to pursue and help shield consumers from inflated drug prices that’s happening almost everywhere.
Las September 2021, a Gallup poll was conducted. It garnered interesting results. According to the findings, around 18 million Americans had recently been unable to pay for at least one prescription medication for their homes. This was brought about by the ever-rising costs of medicines. They also found that 1 in 10 Americans have skipped doses just to save some of their much-needed cash. The pharmacy’s launch is considered the first and big milestone when it comes to bringing affordable medications to the public.
There are a number of notable medications that epitomize the pharmacy’s savings. Included here are brands such as Imatinib, a leukemia treatment that has a retail price of $9,657 per month but with MCCPDC costs $47 per month; Mesalamine, an aulcerative colitis treatment that sells for around $940 per month, and which is sold at $32.40 per month with MCCPDC; the gout treatment Colchicine which sells at $182 month, the lowest price with a common voucher is $32 per month, and with MCCPDC, it is available at a mere $8.70 per month.
All About Consumer-First Prices
“We will do whatever it takes to get affordable pharmaceuticals to patients,” shared Alex Oshmyansky. He is the CEO of Mark Cuban Cost Plus Drug. He also added, “The markup on potentially lifesaving drugs that people depend on is a problem that can’t be ignored. It is imperative that we take action and help expand access to these medications for those who need them most.”
MCCPDC is a registered pharmaceutical wholesaler. This means that they are able to bypass the inflated markups. The prices of the medicines they have are the actual manufacturer prices plus a flat 15% margin and pharmacist fee. They also refuse to pay spread prices to third-party PBM administrators in order to be allowed to process insurance claims. Hence, this online pharmacy will be a cash pay venture.
MCCPDC’s business model means that patients can immediately avail of a wide array of medications at prices that are more than often lower than what most insurance plans’ deductible and copay requirements would total.
Last November 2021, MCCPDC became a part of the PBM industry. Their goal is to serve companies that provide prescription coverage in the benefit plans of their many employees. More importantly, they have promised to be “radically transparent” when it comes to their own negotiations with drug companies as a PBM. They want to make sure that the true costs aren’t hidden as everyone pays for drugs and eliminating spread pricing and misaligned rebate incentives.
MCCPDC foresees how PBM comes with the power to save companies millions of dollars with no changes to the benefits they now have. Of course, all these will depend on the size of the company. Nonetheless, this will eliminate the traditional PBM model.
Most importantly, the new company plans to amalgamate its pharmacy and wholesaler with its PBM. In the long run, they will be able to use a variety of services and they will also gain access to wholesale pricing via the online pharmacy.
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