Today’s episode features Nick Parrino, MBA, and Nick Schooley
How has the PBM market evolved and how does ProAct's consultative approach benefit our relationships with current and prospective clients? On this episode of the Stay in Check Podcast, ProAct’s Vice President of Sales, Nick Parrino, MBA, sits down with ProAct Regional Sales Director, Nick Schooley, to talk about something that they are both passionate about — building relationships.
Regulation of the industry has created parity in the PBM space. “[Regulations] allow PBMs, like us, to continue to do our job,” says Nick Parrino, “... we’re uniquely positioned … we have had [100%] organic growth over the past 26 years. We’re stable but we’re innovative.”
Small and mid-size employers deserve to know what their member data looks like. “We look for … what their current utilization looks like, if [they] have access to their data, we’re able to put together a solution that makes sense for them,” says Nick Schooley. “The level of attention that we have … it’s important for us to … build a bridge … and make sure that every single dollar is accounted for.”
“Pharmacy spend is supposed to increase by 11-12%,” says Nick Parrino. “Most private companies look to increase [their] revenue [by] 15-20% per year, so that cuts their margin quite a bit … The vast majority of spend comes from specialty medications … that’s a call to action for us, as a PBM … to have this holistic approach, what [spend] looks like over the next … five years … client by client.”
There are a lot of programs out there that can help members save money. “The biggest barrier [that plan sponsors face] from their members, is for members to … understand what programs are available [to them],” says Nick Parrino. “We believe at ProAct, and most PBMs should do this, is to have member engagement technology.”
Between 80-85% of employers choose to stay with their current PBM. “Fear of change is a big component as to why plan sponsors don’t move,” says Nick Schooley. “There’s a certain percentage that are … willing to move,” says Nick Parrino, “so to your point, we have to really show them … to be part of the solution of making that transition.”
Transparency should not be a selling point in any industry. “There’s a lot of … gimmicks and catchphrases that exist in the PBM [space],” says Nick Schooley. “What’s important is to be able to measure the value of what is actually being said. Transparency doesn’t solve the problem. Until we can understand what is … there’s going to be a lot of bad choices … and empty promises.”
View the full podcast “A Consultative Approach to an Evolving PBM Marketplace”
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