Many self-insured employers use alternate funding programs that source drugs to save tens of thousands of dollars on their drug spend. CNBC published the a story this week highlighting certain issues with alternative funding Rx programs. You can see the summary and the full report by pasting the links below into your browser.

Some of the risks identified by CNBC are true, while some of the commentary overstates certain of the risks. My experience with employers using such programs has been positive, with patients receiving medications that are safe and effective and the employer saving tens of thousands of dollars.

Certainly there are bad actors in every market, and pharmaceuticals has its share. Many of the alternate funding programs do a good job of ensuring the quality of the medications. My State, WI, has been allowing drugs from Canada in for some time, apparently relying on the Canadian version of the FDA to ensure quality. The larger issue is the tremendous cost difference between the same drugs made by the same manufacturer but sold for $10,000 in the U.S. and $1,000 in another country. Until this issue is fixed, white bagging of pharmaceuticals will remain a cost reduction strategy for many companies.

The 5-min summary on CNBC this morning.
https://lnkd.in/eUd88Xw9
 
The full 31 min investigative report. It mentions several well known AFP programs that are used in the industry every day.
https://lnkd.in/gGAF2Raj