Mark Cuban Cost Plus Drugs Affiliate Pharmacy Network Aims to Support Independent Pharmacies

In 2023, Cost Plus Drugs launched its Affiliate Pharmacy Network in an effort to further support independent pharmacies by providing transparent pricing and local access through the Team Cuban Card. The network seeks to address gaps in mail-order services and improve medication availability in communities with limited pharmacy options.

Mark Cuban Cost Plus Drugs Affiliate Pharmacy Network Aims to Support Independent Pharmacies / Azee Jacobs - stock.adobe.com

Drug Topics® recently sat down with Erin Albert, MBA, PharmD, JD, DASPL, chief of pharmacy relations, network and privacy, at Cost Plus Drugs, to discuss the motivation behind creating the program, how it works for patients at the point of sale, how it helps independent pharmacies compete with larger chains, and advice for pharmacists who are considering joining the network but are unsure about the risks or long-term benefits.

Drug Topics: What was the core motivation behind launching the Cost Plus Drugs Affiliate Pharmacy Network, and how does it align with Cost Plus’s long-term vision for pharmacy?

Erin Albert, MBA, PharmD, JD, DASPL: Cost Plus Drugs launched its Cost Plus Drugs Affiliate Pharmacy Network primarily to support and empower local independent pharmacies with fair, transparent, nationwide pricing. We recognize local community pharmacies, and in particular independent pharmacies, as the lifeblood of local communities and a crucial, accessible touchpoint within the healthcare system.

This initiative directly addresses the fact that not all medications are suitable for a direct-to-consumer mail-order model like we have today at CostPlusDrugs.com. By partnering with local pharmacies, we aim to ensure the survival and prosperity of independent pharmacies which helps preserve a vital community resource and reduce pharmacy deserts. The affiliate network also expands accessibility and choice for patients. Patients gain the flexibility to choose between mail-order for maintenance medications and local pharmacies for both acute and ongoing prescriptions, ensuring both affordability and convenient access. Additionally, it provides fair compensation to local pharmacies. Cost Plus Drugs commits to paying a fair dispensing fee, a practice we note is not always followed by other plans, further supporting the financial viability of these essential businesses.

This strategy aligns with Cost Plus Drugs' long-term vision of creating a comprehensive pharmacy ecosystem where patients have affordability, accessibility, and freedom of choice in how they obtain their medications. We see local pharmacies as an integral and valuable component to the healthcare ecosystem, complementing their mail-order service to meet diverse patient needs. Patients should never have to make impossible choices between affording their food, rent, or life-saving prescription drugs.

Drug Topics: Can you walk us through how the Team Cuban Card and Affiliate Pharmacy Network work for patients at the point of sale?

Albert: Sure. For patients, utilizing the Team Cuban Card and the Affiliate Pharmacy Network is a straightforward process designed for transparency and ease of access to affordable medications: Patients begin by visiting the Team Cuban Card website, where they can browse a comprehensive list of over 2,000 available drugs and locate participating pharmacies within their zip code. If interested, they can easily sign up and download their personalized Team Cuban Card, which is then sent to them via email within 24 hours of signing up (patients aged 18 years and older only at this time).

Once a patient has their Team Cuban Card and a prescription from their doctor, they simply present both at their local network pharmacy. The pharmacy processes the prescription using the Team Cuban Card, and the patient receives the published price for their medication.

For their services, participating pharmacies receive a guaranteed baseline dispensing fee of $12 per prescription, as well as $14 for medications requiring cold chain storage or complex REMS (Risk Evaluation and Mitigation Strategies) programs, and $25 administration fee for influenza vaccines listed on the Team Cuban Card.

The Team Cuban Card is a lifetime membership for the patient, unlike single-use discount coupons. This ensures ongoing access to transparent pricing.

Beyond direct patient enrollment with the Team Cuban Card, the Cost Plus Drugs Affiliate Pharmacy Network and pricing are also integrated into select commercial employee benefits programs. Cost Plus Drugs is actively collaborating with transparent PBMs (Pharmacy Benefit Managers) to further expand the availability of our network to a broader range of employers, ultimately increasing patient access to affordable medications.

Drug Topics: How does the affiliate network model help local pharmacies compete with large chains and vertically integrated health systems?

Albert: The affiliate network model, as exemplified by the Team Cuban Card and the Cost Plus Drugs Marketplace, levels the playing field for local pharmacies by ensuring equitable access to medications and fair reimbursement. Before any drug is added to the Team Cuban Card list and offered through our network, its availability to all pharmacies in our network through the Cost Plus Drugs Marketplace is verified.

Any licensed pharmacy or facility may sign up for the Cost Plus Drugs Marketplace and purchase over 4,000 medications from two different distributors. The ingredient cost of drug reimbursement is set based on the actual acquisition price from the Cost Plus Drugs Marketplace, allowing pharmacies to obtain drugs at or below the reimbursed cost. This contrasts with many other plans where pharmacies often lose money on ingredient cost reimbursement because many PBMs do not consider actual acquisition cost of a drug before reimbursing the pharmacy. This allows local pharmacies to compete more effectively by improving their profitability and access to a wide range of medications.

Drug Topics: What advice would you give to an independent pharmacy considering joining the network but unsure about the risks or long-term benefits?

Albert: Joining our network presents no discernible risks and offers substantial long-term benefits for independent pharmacies. It provides an additional channel for pharmacies to compete effectively with transparent pricing, ensuring they are fairly compensated for their vital services. One significant advantage is the reclamation of pharmacists' time. Instead of spending valuable and finite hours navigating complex coupon clipping for patients, pharmacists are freed up to practice at the tops of their licenses with more meaningful services. This includes expanding into areas like point-of-care testing, prescribing (where permitted), and medication therapy management, especially in underserved communities where these services are desperately needed.

Becoming part of a national pharmacy network offers a powerful competitive edge. No single independent pharmacy can realistically serve a large employer with tens of thousands of employees spread across the country. However, by joining forces within the network, independent pharmacies can collectively bid for and successfully manage pharmacy benefits for both large and small self-funded employers, significantly expanding their reach and revenue potential. Large employers want other options beyond the big 3 PBMs, and this is a way to team up for a large impact across the US and provide another option.

To learn more about joining our pharmacy network, any pharmacist in charge or pharmacy owner may complete a form and we provide them all the information to make an informed decision.

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