third party financial issues
DESCRIPTION
TRANSCRIPT
Third Party Financial Third Party Financial IssuesIssues
An Overview of Managed Care
With a Dash of
Humor
What exactly is health insurance?
A program that helps its members obtain the healthcare services they need by reducing the risks of financial exposure
Risks are minimized by spreading financial costs and risks over a large group of members in the plan.
Overview of Rx Drug Benefits: Balancing Costs and Access
Health Maintenance Organization Act of 1973– Addresses Rising Healthcare Costs– Defined HMO Federal Requirements– Led to proliferation of HMO’s
Medicare Rx Drug Improvement & Modernization Act
Forces Driving Drug Costs
Utilization– Aging population– New medical treatment guidelines
• Aggressive use
– Available new expensive treatments• Demand
• Quality of life
– Specialty pharmaceuticals
The Payers and the Players
Health Plans– Indemnity or Fee
for Service Managed Care
– HMO, PPO– Pharmacy Benefit
Managers (PBM)
Public Health Insurance– Medicare– Medicaid
• Medi-Cal– Tars/E-Tars
• CCS-California
Child Services
Payers and Players cont.
Employer– Premiums
Employee (Subscriber)
– Dependants– Deductible– Out of Pocket Costs– Co-pay versus
Coinsurance
Formularies: Clinical and Cost Containment Perspective
Formulary– Open– Closed– Limited
Multi-tiered Benefit Design• Single tier• Two-tier• Three-tier• Four-tier
More Rx Cost Containment Tools
Prior Authorizations (PA) Step therapy Supply limit Refill to soon rejection Drug Utilization Review (DUR) Great differences between copay tiers Mail order service
Pharmacy Impact 85-90% of prescriptions ‘touched’
Customer Service– Explaining benefit
issues– Empathy &
communication
Patient education & managing expectations
Third Party Processing– Eligibility Issues– EDS– NDC not covered– DAW
Common – Rejections– Top 10 3rd party
Computer & 3rd Party
On-line adjucation Dispense as Written (DAW)
– 0 no DAW– 1 md requested brand– 2 pt requested brand– 3 rph selected brand– 4 generic not in stock– 5 brand dispensed but priced as generic– 6 n/a– 7 substitution not allowed, brand mandated by law– 8 generic not available
Economics Incentive Programs
Pharmacy Reimbursement– Contracted rates– Payment terms
Increasing Generic Dispensing
Formulary Compliance
Customer Service Surveys
Cognitive Services Wellness Programs
MEDICAL (California)
Eligibility Treatment Authorizations Requests
(TARs)– Etars
ID numbers Date of Issue
Medical Cards
Medicare Rx Drug Benefit
What is it? Who is it for? When does it begin? Which is the best plan
for me? New Challenges and
Confusions Where is the
information?
Standard Benefit Average $30/mo Drug Formularies Tiered Co-pays Prior Authorizations
Medicare Rx Resources
www.medicare.gov– Select ‘Prescription Drug & Other Assistance’– 1-800-MEDICARE
www.RxSavingsAccess.com– 1-800-CARD4RX
www.Together-Rx.com– 1-800-865-7211