The formula(ry) for lower prescription drug costs
Walmart and healthcare partner Humana are out with a new prescription drug program called Rx4Value that guarantees saving and relies on the proven strategy of improving affordability by restricting choice to generic drugs.
Humana Pharmacy Solutions, the pharmacy benefit management subsidiary of Humana Inc., said the new formulary and the Walmart Rx Network guarantee up to 20% savings on employers’ average prescription price. Those claims are possible in part because the new Rx4Value formulary replaces certain brand-name drugs with generic alternatives that Humana said are equally effective and provide greater cost-savings. The program is available to self-insured employers and will be available to fully-insured employers later this year.
The new Walmart Rx Network will allow employers to select a Walmart-focused network for their employees to fill their prescriptions. The network offers self-insured employers an average of 10% savings on their annual average prescription price, according to Humana. The new Rx4Value formulary provides comprehensive therapeutic coverage while saving self-insured employers an average of 15% on their members’ annual average prescription price. Both options are available individually and can be combined for compounded savings, according to Humana. In total, self-insured employers who select both the network and formulary options will be able to save up to 20% on their annual average prescription price, meaning that a self-insured employer with 1,000 employees could achieve savings of as much as $400,000 per year, according to Humana.
“At Walmart, we’re committed to providing low-cost prescriptions and ensuring that people have affordable access to the medications they need to help them live healthier lives,” said Dr. John Agwunobi, president of Walmart U.S. health and wellness. “We are proud to team with Humana on this innovative benefit.”
William Fleming, president of Humana Pharmacy Solutions, called the program a simple and cost effective approach that helps employers better predict costs and save money.
“Pharmacy is the most used health benefit, and providing new, unique pharmacy benefits services that best meet employers’ and members’ needs directly supports Humana’s mission of helping people achieve life-long health and well-being,” Fleming said.