Bluffton, South Carolina — Famulus Health recently launched to provide health plans and employers with lower drug prices by leveraging access to cash networks in the US. Surprisingly, people with insurance often pay as much as 5-10 times more for prescription drugs than those paying fully out of pocket with no coverage. As a result, consumer coupons and cash price offerings are gaining in popularity. Famulus partners with some of the largest networks in the US to take advantage of cash pricing at scale.
“For insured consumers to get cash pricing at the pharmacy is cumbersome today,” says Mike Szwajkos, Founder and CEO of Famulus Health. “It requires them to be aware of cash pricing and present an additional card or coupon. Our innovation is to bring cash prices to plan sponsors and remove those roadblocks to ensure that if the cash price is the lowest, it’s automatically applied when an individual presents their insurance card.”
While the insured consumer may save $10 or $20 on their co-pay, the savings for self-insured employer groups and health plans–which bear most of the cost of prescriptions for their members–are material. Through Famulus, the reduction in pharmacy spends for a given health plan or employer is 10 to 15 percent without any adverse effect on the care of its members.
Previously, payers would have no way of knowing if their members used cash pricing. Through its Echo technology platform, Famulus enables benefit managers to track these savings in real time, and simultaneously ensure that the pharmacy rates they have negotiated are being honored.
“One of out of three people in the US can’t pay for their prescriptions,” says Szwajkos. “By adding transparency and integrating cash pricing at the level of plan sponsors, Famulus is dedicated to driving down healthcare costs in the United States and increasing accessibility.”
Famulus is an affiliate of Goodroot, which is a community of companies committed to reinventing healthcare one system at a time.
“Cash pricing has always existed outside of benefits, and there’s no reason that should be the case,” says Goodroot CEO Mike Waterbury. “This kind of insight and disruption is exactly what Goodroot exists to support. The launch of Famulus is a major step toward delivering transparency and more access to better healthcare at a lower cost.”