Towers Watson's Rx Group Purchasing arrangements offer employers opportunities to reduce pharmacy spend and mitigate general cost increases through transparency, pass-through pricing and aligned employer/PBM interests. We represent the largest pharmacy benefit employer coalition in the industry with over 170 plan sponsors. Our clients are diverse both geographically and in size, ranging from 1,000 lives to over 40,000. They represent many different industries, such as Health Services, Manufacturing, Energy/Utilities, Retail, Financial and Legal Services.
About Rx Group Purchasing:
Overview and History of Rx Group Purchasing
Towers Watson launched the first Rx Group Purchasing arrangement in 2004 in partnership with legacy Medco Health Solutions. This original offering, named the Rx Collaborative, was established to transform the business model and management processes for pharmacy benefit programs, and reestablish employers' control over cost, quality and effective delivery of their pharmacy benefit plans.
In June 2012, Rx Group Purchasing announced a new partnership with CVS Caremark as an additional PBM partner. This second partnership broadens our offerings and provides options from two major PBM vendors.
Rx Group Purchasing includes the following offers:
- Rx Collaborative
- Rx CVS Caremark Collaborative
Today, Towers Watson Rx Group Purchasing arrangements represent over 170 clients with combined annual drug spend of over $3.2 billion.
The Rx Group Purchasing model is designed to take dollars out of the system and put employers back in the driver's seat.
Rx Group Purchasing Founding Mission
Transform the business model and management processes for pharmacy benefit programs to reestablish employer control over cost, quality and delivery effectiveness.
Rx Group Purchasing Rationale
Prescription drug costs have grown significantly over the past five years. Moreover, since actual manufacturing costs, discounts and other aspects of drug pricing are largely invisible to employers, it is extremely difficult for them to effectively manage their drug benefit programs. By banding together and building from a clear picture of actual costs, employers and PBMs can more effectively collaborate on utilization management, disease management, formulary development and other key initiatives. These overall efforts will have a sustainable long-term impact on overall costs and quality.
Rx Group Purchasing Scale
As of January 1, 2012, Towers Watson Rx Group Purchasing arrangements include over 170 participating employers with combined annual drug spend of over $3.2 billion. Our employers represent a diverse range of industries and include companies of all sizes.
Rx Group Purchasing PBMs
Legacy Medco Health Solutions (MHS) was selected as the first PBM for this initiative. In 2003, before selecting MHS, Towers Watson evaluated 17 PBMs as part of a comprehensive assessment process. In 2010, an RFP was sent to 25 organizations, and six bids were evaluated. Again, legacy Medco Health Solutions was the successful bidder. Towers Watson continues to conduct periodic market assessments in order to negotiate the most competitive contract. In 2012, during a time of PBM-industry consolidation, Rx Group Purchasing was expanded to include a second partnership with CVS Caremark.
Customized Value Proposition Analysis
Employers can receive a customized savings opportunity analysis (value proposition) by providing summarized utilization data and information about their current pharmacy benefit arrangement. The value proposition serves as a high-level price-point comparison of an employer’s current arrangement and the Towers Watson Rx Group Purchasing deals. The value proposition also provides employers with an estimate of the savings they can achieve by joining an Rx Group Purchasing arrangement.
This free analysis requires no obligation and minimal effort on the part of the employer. If you are interested in receiving a free, customized value proposition on behalf of your organization, please submit your information through the Contact Form.