UnitedHealth Group's drug-benefits unit is starting to reimburse pharmacies more for dispensing
Pharmacy benefit managers have traditionally compensated pharmacists more for cheaper generic medicines to encourage their use, said Patrick Conway, chief executive officer of UnitedHealth's Optum Rx unit. But generic adoption has plateaued, and Conway said the old system discouraged some pharmacies from stocking newer branded drugs like
"We want them to stock the drugs because we want people to be able to get the drugs wherever they go," Conway said in an interview.
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He said the company is adjusting pricing so that drugstores will make a small profit on whatever prescriptions they're filling. UnitedHealth started to make these changes over the past year, and the company's goal is to apply them to all prescriptions by 2028.
The two largest U.S. pharmacy chains, CVS Health and Walgreens Boots Alliance, have both said in recent years that declining reimbursements are harming their business.
Pharmacy benefit managers, which oversee drug plans for employers, unions, and insurers, have faced mounting criticism in Washington over their complex arrangements with drugmakers and pharmacies. Companies have been making changes aimed at addressing scrutiny and preempting potential action from lawmakers.
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UnitedHealth's moves follow new pricing options at Express Scripts, the drug-benefits business owned by Cigna. CVS has also been modifying the way that its pharmacies get reimbursed.
