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Encore! EP397: The Minefield That Is a PBM Contract and Also Some Advice for EBCs Who Are Taking Money Under the Table, With Paul Holmes
Description
In this encore episode of 'Relentlessly Seeking Value,' host Stacey Richter revisits a critically important conversation with ERISA attorney Paul Holmes about the complexities and hidden pitfalls in Pharmacy Benefit Manager (PBM) contracts.
Aimed at CFOs and employer plan sponsors, Holmes highlights how poorly reviewed PBM contracts can lead to companies paying 30-40% over market for pharmacy benefits, discusses the potential legal exposures under the Consolidated Appropriations Act (CAA), and suggests the essential need for independent reviews.
Holmes also delves into issues with Employee Benefit Consultants (EBCs) taking indirect compensation from PBMs and offers actionable advice for employers on how to mitigate these risks.
=== LINKS ===
🔗 Show Notes with all mentioned links:
https://cc-lnk.com/Encore397
🔗 Healthcare Industry Acronyms and Terms
https://relentlesshealthvalue.com/healthcare-acronymns
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07:41 What are Paul's usual observations when a PBM contract crosses his desk?
08:34 "If you just sign … one of their model contracts …, you're probably gonna pay 30% to 40% above market on your drug spend."
12:11 What is a PBM lawyer? And why is it important to find an ERISA PBM lawyer?
17:12 EP379 with AJ Loiacono.
17:40 Who is on the hook for the cost of the PBM contracts?
21:05 What's the problem with most ERISA lawyers today?
22:56 Lawsuit about PBM contract.
27:43 What's Paul's advice for benefits consultants?
31:40 How much might a plan sponsor be paying their consultant versus what a consultant might be making from a PBM?