Brandon Newman: Drugs are becoming a highly prevalent part of the overall delivery of healthcare. It has become the focus. For example, these health plans that help manage $500 million are going to enable dozens of new specialty biologic medications come to market that is not going to cost your stereotypical couple of hundred dollars.
We are talking about thousands or hundreds of thousands of dollars just to give a patient a medication that is now injected or infused. Earlier, they were confined to a life of going to the hospital to visit a doctor. This costs a lot of money.
Because of technological improvement on biologicals and all the new special medications coming out, you are seeing a shift of patients moving to drug therapeutics instead of confining themselves to a life of hospitals. The efforts and needs to manage drug costs have become prevalent and are needed to curb that 3x cost of healthcare.
I can go into more details on what the current solution is versus what we have come up with. If you look back over the last three decades, most of the time, a pharmacy benefits manager will manage those costs. They are the administrators of managing these high-cost and low-cost medications.
To do that, they are given reporting solutions that they will run dozens of reports for every single employer group in there to determine the kinds of drugs that are being spent, where they are being spent, and if any changes are going on. You have to pour over a lot of documentation reports to find that needle in the haystack.
Many people have said that it’s like finding a needle in a pile of needles. That is how tedious and difficult it is. If you are talking about a health plan that has 5,000 employers or clients, you have to do that research every single quarter for every single customer if you are going to better manage their costs.
What we have done is, we have automated that entire process. Instead of being forced to run dozens of reports for 5000 customers every quarter, we do it every single day autonomously. We look for the hundreds of different possible ways that their costs could be going up based upon all our algorithms.
Instead of running reports to find that needle amongst the haystack of needles, that needle just comes to the account manager itself. That is how we’ve uniquely solved a major problem in the market. As a result, we help these health plans in reducing the difficulty in finding the problem and managing their customer’s costs.
We are also helping the payers or employers who just can’t get a handle on their costs. We are able to reduce significantly more than just paying claims and managing them in the traditional environment.