Drug Pricing Tools & Comparison | Scripta – Eric Levin

The escalating complexity of prescription drug pricing is a growing concern for consumers, and a new company, Scripta Insights, is aiming to simplify the process of finding affordable medication. Founded by Eric Levin, a seasoned entrepreneur with a history of building successful businesses, and Dr. Paul S. Bradley, a practicing physician, Scripta offers comparison tools designed to help individuals navigate the often-opaque world of pharmaceutical costs. This comes as reports emerge highlighting how even generic drug pricing can be manipulated, potentially costing consumers more.

Navigating a Complex Landscape

Levin, who has been involved in over 32 mergers and acquisitions and helped grow companies from startup to global scale, joined Scripta believing the U.S. Healthcare system is facing a crisis regarding drug affordability. His background includes roles at major companies like Mattel and Li & Fung Ltd., demonstrating a broad understanding of both consumer and business-to-business markets. Scripta’s team page details his extensive experience and motivation for tackling this issue.

The need for such tools is underscored by recent findings regarding pricing practices within Pharmacy Benefit Managers (PBMs). A recent LinkedIn post by Eric Levin highlights a case where a Cigna unit appeared to inflate the price of a commonly prescribed generic drug, atorvastatin (40mg), by creating a new National Drug Code (NDC) identifier. While the average unit cost of the drug was $0.38, the new NDC was priced at $0.56, potentially leading to higher costs for consumers despite the availability of cheaper alternatives.

The Role of Pharmacy Benefit Managers

PBMs act as intermediaries between drug manufacturers, insurance companies, and pharmacies. They negotiate drug prices and create formularies – lists of covered drugs. Still, the lack of transparency in their pricing practices has come under scrutiny. The practice described by Levin, known as “spread pricing,” involves PBMs charging health plans more for a drug than they reimburse pharmacies, pocketing the difference. This can create incentives to favor higher-priced drugs, even when cheaper generics are available.

Scripta’s approach, as described in an article in AJMC, focuses on providing consumers with the tools to compare prices and identify the most affordable options. This includes considering factors beyond just the base price of the drug, such as coupons, discounts, and pharmacy-specific pricing.

Beyond Generics: Finding Hidden Savings

Levin emphasizes that savings opportunities aren’t limited to switching to generics. His LinkedIn post points out that the problem isn’t always a single large issue, but rather “a hundred little holes” in the system. Scripta aims to identify these smaller savings opportunities, such as variations in pricing between different pharmacies or the availability of manufacturer coupons. The company positions itself as an “Rx navigator” for members, proactively identifying and addressing these cost discrepancies.

Dr. Bradley’s involvement stems from his frustration with the impact of high drug costs on his patients. He discovered that physicians often lack visibility into the actual costs of prescriptions, hindering their ability to make informed decisions with their patients. He assembled a team of over 50 physicians to develop a solution, ultimately leading to the creation of Scripta and its P&T (Pharmacy & Therapeutics) Committee.

The P&T Committee and Clinical Oversight

Scripta’s P&T Committee, comprised of practicing physicians, plays a crucial role in ensuring the clinical appropriateness of the drug comparisons offered by the platform. This committee reviews drug formularies, assesses clinical evidence, and provides guidance on optimal medication choices. This clinical oversight is intended to ensure that cost savings are not achieved at the expense of patient safety or efficacy.

The issue of generic drug pricing isn’t simply about the cost of the medication itself. As Levin’s example illustrates, the way drugs are packaged and identified can also impact pricing. By creating new NDC codes, PBMs can effectively reset the price of a generic drug, even if the underlying medication remains the same. This practice highlights the need for greater transparency and oversight in the pharmaceutical supply chain.

What to Expect as Scripta Evolves

Scripta’s long-term success will likely depend on its ability to build trust with both consumers and healthcare providers. By providing transparent and accurate drug pricing information, and by incorporating clinical expertise into its recommendations, the company aims to empower individuals to make informed decisions about their healthcare. The company’s focus on identifying and addressing “small holes” in the system suggests a commitment to continuous improvement and a proactive approach to cost savings. Further development of their comparison tools and expansion of their network of participating pharmacies will be key to increasing their reach and impact.