RPB for pharmaceuticalscreates a reference price for certain commonly used drugs. Plansponsors agree to pay most of the cost for the reference drug, andmembers choose which drug they want prescribed. (Photo:Shutterstock)

Could the dawn of a new era is health plan drug purchasing meanthe sun will soon set on the pharmaceutical benefits management (PBM)industry? New research on reference-based pricing (RBP) suggests that maybe the case. And the CEO of a consulting firm that developed RBPtechnology says it will definitely be the case—although he’s notsaying just when that will happen.

RBP will be “the disruptive force” in the employer plan pharmaceutical cost model, saysDavid Henka, CEO of ActiveRADAR, maker of a technology that setsreference prices for commonly prescribed drugs. The technology wasused by researchers to set reference prices for drugs in thestudy.

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Dan Cook

Dan Cook is a journalist and communications consultant based in Portland, OR. During his journalism career he has been a reporter and editor for a variety of media companies, including American Lawyer Media, BusinessWeek, Newhouse Newspapers, Knight-Ridder, Time Inc., and Reuters. He specializes in health care and insurance related coverage for BenefitsPRO.