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Episode #26 - Drexi | Bill Miller & David Kwasny

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I Want a New Drug (Benefit Manager)


Our podcast discussion today between Michael Andrade, David Kwasny, Chief Revenue Officer, and Bill Miller, CEO of Drexi

David’s background is in the PBM space as a pharmacist and former executive of a PBM that was eventually acquired by Optum. This is important because David knows first hand where many of the pricing and profit levers lie within the PBM space and also he leverages his knowledge to drive value to the consumer and employer experience.

David Miller is the President/CEO of Drexi and his background is helpful as well given his background in the tech, pharmacy, and as a boy scout leader.

Drexi is a PBM without conflicts, Honest Pricing, Better Benefits. They’re a technology company in the PBM space who delivers fair pass through contracts that deliver a medication price that is consistent through the transaction.

During this interview we discuss:

  • How you can have price variation when you use AWP (Average Wholesale Price)
  • How a typical PBM can make so much money with multiple MAC lists, Multiple sources of AWP, and Multiple other channels for price lists.
  • Why Net cost is the only barometer you should be using to measure pricing value
  • How cutting out middlemen drives value and choice
  • Why pass through contracts are so important as well as making sure that your PBM is truly transparent versus spread pricing.
  • The value of Pass through vs. spread pricing. 50%-70% of gross margin means a doubling of the cost of a drug.
  • How low administration fees mean your getting hosed somewhere else.
  • How you can have dramatic price variability depending on the pharmacy you get your script filled.
  • What is meant by an Honest Transaction vs. a typical transaction.
  • How Drexi works with pharmacies
  • How Drexi helps individuals pick the lowest cost pharmacy and a market basket approach for multiple scripts.
  • Abandoning a Generic, Brand, Non-preferred brand approaches for copayments vs. Net cost of a script.
  • Integrating multiple solutions within your PBM. Can you do it now Mr./Mrs Employer – Absolutely not. Why is that? (It’s a breach of contract. You should be livid about this!)
  • Typical savings using a contract to contact and additional savings using a smart shopper approach to medication. (Total savings in the 15%-35% depending on the levers you pull as an employer.)
  • How to incentivize behavior within your workforce
  • How to customize your plan to meet your needs.
  • How Drexi makes money (it’s pretty simple).
  • How to connect with Drexi.

If you’d like to learn how this and other programs can fit into your benefit strategy please feel free to contact me: Michael Andrade (832) 236-8966