Blog Viewer

MBGH Launches Employer-driven Pharmacy Benefits Management Solution

By MBGH Information posted 09-17-2019 02:09 PM


EmployeRxEvolution designed to disrupt the current business model


CHICAGO – September 18, 2019 – The United States spends more than $329 billion annually on prescription drugs and the cost for retail prescription drugs is estimated to outpace that of other health care spending. To help employers achieve transparency, remove waste, increase flexibility and get the best price for the billions spent on pharmacy benefits, the Midwest Business Group on Health has launched EmployeRxEvolution.


Developed in collaboration with MBGH’s non-profit employer purchasing organization, the Midwest Health Purchasers Collaborative, and pharmacy benefits consulting firm Health Strategy, LLC, EmployeRxEvolution is an employer-driven solution focused on transforming the way pharmacy benefits are paid for and delivered.


“Employers and other health care purchasers need transparency of the real costs of drugs and for pharmacy benefit managers (PBMs) to focus on high-value drugs that provide the best outcomes for patients,” said Cheryl Larson, MBGH president and CEO. “They also want drug formulary decisions to be based on clinical efficacy and safety rather than rebates which are fake money, like a tax return.”


EmployeRxEvolution enables employers to negotiate savings based on total lives represented to:

  • Clearly define terms and pricing conditions for PBM contracts to support the plan sponsor’s fiduciary responsibilities
  • Ensure all relationships are non-biased and free of conflict
  • Conduct regular audits to ensure contract terms and conditions are met
  • Create custom formularies focused on clinical efficacy and cost to members rather than rebates


“Pharmacy benefits are complicated and like most employers, we struggled to understand why our costs continued to rise each year even though we were part of our benefit consulting firm’s group purchasing program,” said John Butler, manager, Benefit Design, Edward-Elmhurst Health, an 8,500 employee health system based in the Chicago area and MBGH member. “Through EmployeRxEvolution we’re now able to access independent expertise focused exclusively on pharmacy benefits and secured a PBM contract that will reduce our pharmacy benefit costs by over 15%. As a plan fiduciary, we can now make our own drug coverage decisions and have an impartial firm auditing our contract.”


Employers can find more information and learn how to participate here.


“How pharmacy benefit management is delivered needs to change,” said Denise Giambalvo, MBGH vice president. “Employers are in a position to use their collective voice and direct that change. What’s important is that they recognize the power they hold and take action.”


About Midwest Health Purchasers Collaborative

Founded by MBGH in 1998 as a taxable non-profit Illinois corporation, the Midwest Health Purchasers Collaborative (MHPC) is an independent entity with its own board of directors that annually oversees, manages and identifies purchasing opportunities to enhance the value of an employer’s health benefit dollars. Created to improve the quality, value and availability of health care delivered to employees, MHPC is working to make the health care system more accountable and responsive to the needs of health care purchasers and patients.


About Health Strategy, LLC

Health Strategy is one of the industry’s largest pharmacy benefit consulting firms with over $50 billion in annual PBM contract value under management. With more than 10 years of experience working with self-insured employers, the organization offers market intelligence to maximize the value of pharmacy benefit investments.


About the Midwest Business Group on Health

MBGH is one of the nation’s leading non-profit employer coalitions of 125 mid, large and jumbo self-funded public and private employers, representing over 4 million lives and annually spending over $4.5 billion on health care. Members consist of leading health benefit professionals, with activities focused on education, research, benchmarking and community-based initiatives that increase the value of health benefits and health care services. MBGH is a founding member of the National Alliance of Healthcare Purchaser Coalitions. Follow us on Twitter and LinkedIn.

# # #
View PDF