How to Work Directly With Medical and Pharmacy Systems
Last month our president, Howard Danzig, shared a post on LinkedIn about Mark Cuban’s mission to make affordable medications accessible to everyone. With over 100 interactions, it was clear our post struck a nerve. Frustration with insurance companies and the rising costs of medication is evident. The Dallas Mavericks’ owner created “Mark Cuban Cost-Plus Drug Co” to help eliminate this ever-growing problem by cutting out intermediaries when it comes to manufacturing and distributing medications to patients.
MCCPDC came about through an investment in Dr. Oshmyansky’s idea to “disrupt the pharmaceutical industry” (Maddox, 2022). This direct-to-consumer approach decreases costs by removing the middleman, insurance companies, which take a cut during the process. Transparent pricing is the result of cutting out insurance and requiring cash pay. The company is able to sell manufacturer prices, with a flat 15 percent markup, which is reinvested into the company. Some problems can arise with this approach due to the staggering cost difference. It is no secret that pharmaceutical industries hold political power, which could lead to policy changes that prohibit Cuban’s company from running. In addition, manufacturers may not want to sell to MCCPDC because of backlash from pharmacy benefit managers. However, MCCDPC aims to start manufacturing its own medicine to prevent this issue.
“Mark Cuban Cost-Plus Drug Co” is not the only company whose goal is to lower costs by working directly with employers. Blueberry Pharmacy, founded by Dr. Kyle McCormick, also utilizes this method. Growing up working at an independent pharmacy in Pennsylvania inspired Dr. McCormick to provide the same level of care and low costs to his community. McCormick works alongside his wife to provide “fair, transparent prices on affordable generic medications for all patients”.
Howard Danzig, president of ECCHIC, has advocated for this approach for quite some time. However, he wants to make it known that businesses do not need a big company to support this method. Small and intermediate sized employers are also capable of working directly with the medical and pharmacy system. “Employers Committed to Control Health Insurance Costs” helps companies to do so. Why rely on someone else, when you can do it yourself? ECCHIC helps companies to get there by customizing each plan. Regardless of the type of insurance, our cost management team teaches businesses how to do away with middlemen and unnecessary costs. Delivery of adequate health care and benefits should not be a luxury only few can afford. Stop adding to the centralization of control and take back your power today with ECCHIC!