San Juan, PR. — Abarca, a pharmacy benefit manager (PBM) that is revolutionizing the industry with a new approach to technology and business practices, today announced that First Medical Health Plan, a health plan in the commercial and Medicaid space, have once again renewed their relationship for PBM services for an additional three years. This time, with a novel financial model.
Abarca will guarantee an overall per-script net cost capped at a low annual inflation rate, providing First Medical with the drug spend predictability many plan sponsors seek. If costs exceed the guaranteed levels, Abarca will reimburse the health plan for any overage. This model is straightforward, transparent, and disruptive to the status quo pricing models that exist in the PBM market today.
“As more high-cost specialty medications receive FDA approval, the usual strategies for managing drug trends may no longer be the most effective for all clients,” Jason Borschow, president and CEO of Abarca. “We are fully invested in First Medical’s success. This model allows us to have an even more active role in our clients’ overall drug management as we are truly putting our skin in the game.”
Abarca and First Medical began working together in 2011. Under this new agreement, Abarca will continue to provide full PBM services for the plan’s Commercial lines of business for an additional three years.
“We are proud of everything that First Medical and Abarca have been able to accomplish together over the past ten years,” concluded Francisco J. Artau Feliciano, president of First Medical Health Plan. “Our organizations are aligned in our mission to deliver a better experience for the members we serve, and we’re just getting started.”
Abarca is igniting a revolution in healthcare. It started by redefining pharmacy benefits, but this is just the beginning. It is built on the belief that there is a better way for people and companies to work together, connect with each other, and make healthcare awesome for everyone. With smarter technology and a straightforward approach to business, Abarca provides a much better experience and higher value for payers and consumers. For fifteen years, they have challenged many industry conventions and trampled on a few. So, call them a PBM for discussion purposes, but they are unlike any other company out there. Join the revolution at abarcahealth.com.