Re:why having the pharmacy closed to the general public
Finally an easy question that takes my emotions out of the picture.
There are two different factors that go into the price paid by pharmacies and PBM's. One factor is quantity and the other is trade class. While not equal in discount, the application of each determines the total discount.
The benefit of the closed door on-site pharmacy is that it is owned by the employer. More specifically, the Health Benefit. It can be formed in different ways but commonly it is established as a non-profit. The closed door function is vital as you will be categorized at a better class of trade. If you are only servicing for "own use", the business can purchase through buying groups at a drastically discounted price. Average savings are around the 30% mark and can be as high as 80% of normal costs. The key is that you must ensure that only participating members (employees, retirees, and immediate family dependents) can use the pharmacy. You can't use your discounts to be in competition with the retail world.
PBM's can purchase at great discounts due to large volume. But does this volume save 30% to the sponsor? Remember, the sponsor generally does not pay the exact cost of the drug. With mail order, they may save 10%, which to the lay person sounds great. Not so if you know the PBM pays 30% less for the drug.
The beauty of the on-site pharmacy is that the sponsor owns and controls the pharmacy benefit. All of the savings goes directly back into the benefit.
Hope this makes sense. I don't want this to turn into a sales call for those not interested.
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