Health Affairs, 25, no. 5 (2006): 1347-1352 doi: 10.1377/hlthaff.25.5.1347 © 2006 by Project HOPE	New Online   Pay Cuts For Medicare Docs   Access To Care Woes   Public Coverage More Efficient   Empowering Consumers

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Specialty Drugs

PERSPECTIVE

Managing Biotechnology In A Network-Model Health Plan: A U.S. Private Payer Perspective

Emerging biotechnology poses challenges to payers, including access, coverage, reimbursement, patient selection, and affordability. Premera Blue Cross, a private regional health plan, developed an integrated cross-functional approach to managing biologics, built around a robust formulary process that is fast, flexible, fair, and transparent to stakeholders. Results are monitored by cost and use reporting from merged pharmacy and medical claims. Utilization management and case management strategies will integrate with specialty pharmacy programs to improve outcomes and cost-effectiveness. Creative approaches to provider reimbursement can align providers’ incentives with those of the plan. Redesign of member benefits can also encourage appropriate use of biotechnology.

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