In January, HMP Global acquired DCI. Thanks to our new friends at HMP, we will hold the Drug Channels Leadership Forum. This landmark event will take place in March 2025 in Miami. (If you haven’t done so yet, click here to request an invitation.)
Once again, I thank you, dear readers, for welcoming Drug Channels into your inboxes, browsers, and apps. I’m proud of the diverse and thoughtful audience who follows and comments on our unique content. The DCI community now includes more than 100,000 subscribers and followers from all parts of the industry. To stay in touch, you can sign up for an email subscription or follow me on LinkedIn.
We’ve enjoyed bringing you our perspectives and curated links in 2024. We hope that you had fun engaging with us and the DCI community.
Wishing you and your family health and happiness,
Adam and the DCI team
In this issue:
- Unexplainable pharmacy reimbursements in Medicare Part D
- Surprise! There are more (not fewer) independent pharmacies
- Plan risks from shady alternative funding programs
- A brief but enlightening history of pharmacy from 1385 to today
- Jim Gaffigan jokes about GLP-1s
Did you miss the Drug Channels Outlook 2025 video webinar? No worries! Just sign up to watch the replay and download the full slide deck.
Same Drug, 2,200 Different Prices, The Wall Street Journal
Antonio Ciaccia at 46Brooklyn has uncovered shocking information about pharmacy reimbursement by PBMs in Medicare. As you can see from the example below, reimbursement varies wildly for the same drug in the same state at the same time. This is totally nuts.
The article notes: “Caremark has logged 643 different prices for Zytiga generics, while Express Scripts has 500 and Optum Rx carries 445. By comparison, Capital Rx, a PBM with fewer beneficiaries than the three largest firms, had two prices.”
I look forward to an explanation for these crazy variations.
[Click to Enlarge]
The article notes: “Caremark has logged 643 different prices for Zytiga generics, while Express Scripts has 500 and Optum Rx carries 445. By comparison, Capital Rx, a PBM with fewer beneficiaries than the three largest firms, had two prices.”
I look forward to an explanation for these crazy variations.
More US Pharmacies Closed Than Opened In 2018–21; Independent Pharmacies, Those In Black, Latinx Communities Most At Risk, Health Affairs
Are independent pharmacies disappearing? You might think so, given the title of this Health Affairs research paper.
Alas, the study's actual data tell a different story, as you can see from the appendix exhibit reproduced below. From 2010-2021, the net number of independent pharmacies increased in all neighborhood types. That’s because the number of independent pharmacies that opened exceeded the number that closed. Chain pharmacies accounted for the overall decline in the number of pharmacies.
The media’s coverage of this research was truly horrible. Here are just a few examples of the many highly misleading headlines:
P.S. The DCI community had an engaging online debate about the reliability of the underlying data. The study's authors chose not to address these issues.
Alas, the study's actual data tell a different story, as you can see from the appendix exhibit reproduced below. From 2010-2021, the net number of independent pharmacies increased in all neighborhood types. That’s because the number of independent pharmacies that opened exceeded the number that closed. Chain pharmacies accounted for the overall decline in the number of pharmacies.
[Click to Enlarge]
The media’s coverage of this research was truly horrible. Here are just a few examples of the many highly misleading headlines:
- About 1 in 3 retail pharmacies have closed since 2010: study (Healthcare Dive)
- Nearly 30% of US drugstores closed in one decade, study shows (Associated Press)
- Almost 33% of Retail Pharmacies Have Closed Since 2010: These 7 States Were Hit Hardest (Retail Wire)
P.S. The DCI community had an engaging online debate about the reliability of the underlying data. The study's authors chose not to address these issues.
Employer Plans Beware: Alternative Funding Programs May Be Riskier Than They Appear, Health Affairs Forefront
I’ve warned you about alternative funding programs (AFPs)–the shady schemes by which commercial plan sponsors drop drug coverage in order to (1) grab charity support intended for uninsured and indigent patients, and/or (2) facilitate importation from foreign countries.
The situation is even worse than I thought. Check out the fantastic Health Affairs Forefront article about the dangers of shady alternative funding programs for patients and plans. It nicely summarizes the significant compliance issues, including discrimination against patients with chronic conditions, fiduciary risks, financial issues, and consumer protection risks.
FYI, here are some Drug Channels article on AFPs:
A History of Pharmacy as a Profession, Pharmacy Practice News
The situation is even worse than I thought. Check out the fantastic Health Affairs Forefront article about the dangers of shady alternative funding programs for patients and plans. It nicely summarizes the significant compliance issues, including discrimination against patients with chronic conditions, fiduciary risks, financial issues, and consumer protection risks.
FYI, here are some Drug Channels article on AFPs:
I enjoyed reading this history of pharmacy and pharmacists, from 1385 to the 1960s.
Here is Part 2, which covers the 1980s to today.
Here is Part 2, which covers the 1980s to today.
I'm thin now., Jim Gaffigan
Jim Gaffigan is a famous food-obsessed comedian. (Hot pockets!) In this clip, he riffs on weight loss due to obersity medication. Jim even name checks Ozempic and Mounjaro. Funny stuff.
Two Cool Dudes, LinkedIn
Antonio Ciaccia of 46Brooklyn and I were both speakers at a recent event in Miami. For your viewing pleasure, here’s a photo of two cool dudes chatting about PBMs, 340B, and hair care.
I try to post thoughtful and intriguing items to social media. The engagement on my LinkedIn post of this photo exceeded all of those posts, logging more than 700 likes and more than 35,000 impressions.
[Click to Enlarge at Your Own Risk]
I try to post thoughtful and intriguing items to social media. The engagement on my LinkedIn post of this photo exceeded all of those posts, logging more than 700 likes and more than 35,000 impressions.
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