Troy Medicare's model is based on paying
pharmacists directly for enhanced care management services at a rate of between
$30 to $50 per-member-per-month.
By KEVIN TRUONG / May 12, 2019 at 10:29
AM
The
independent community pharmacy is under siege from emerging mail-order drug
services, pharmacy chains like CVS and Walgreens and declining reimbursement
rates, but as Flaviu Simihaian likes to point out the segment is holding steady at around 35 percent of
the country’s retail pharmacy space.
Simihaian
is the CEO of Troy Medicare, a Charlotte, North
Carolina-based Medicare Advantage startup looking to leverage these independent
pharmacists to help deliver care and manage the chronic conditions of seniors.
Simihaian
previously helped start a company called Amplicare, which provided workflow
automation software for pharmacies. It was in this role that he started to see
the potential of pharmacists as a key cog in care delivery.
Instead
of just filling prescriptions, he witnessed pharmacists providing health
assessments, helping overcome patients’ social barriers to care and helping
patients understand how to keep healthy and stay adherent to their medications.
“There’s
this idea that pharmacists are just pill dispensing machines, but there’s a
reason they continue to stay around even with everyone healthcare is
effectively trying to put them out of business,” Simihaian said. “They stay
because they have developed a trusted relationship and provide a much higher
level of care for their patients.”
Medicare
Advantage is a rapidly growing segment within the insurance industry, driven by
favorable federal policies which allow more flexibility in how plans operate.
Because of Medicare Advantage’s capitated payment model, health plans are
incentivized to figure out new ways to coordinate care and keep patients
healthier and out of the hospital.
According
to research sponsored by
AmeriSourceBergen, patients interact with their pharmacist 35
times a year versus only four visits with their provider. Troy is betting that
these touch points can be more effectively used to manage chronic diseases,
ensure medication adherence and deliver preventive health measures like flu
shots.
Amina
Abubakar, the owner of Rx Clinic Pharmacy in Charlotte, North Carolina and
Troy’s clinical director, said in her normal practice she delivers medications
to homebound patients, put together medication adherence packages and
works with patient’s clinicians on their care.
She
said that the problem is that these actions don’t receive any commensurate
reimbursement from health plans.
“We
still get paid only for the pills we dispense,” Abubakar said. “These
things we do are so important to drive better outcomes, but no payer seems to
actually value them.”
Troy
Medicare’s model is based on paying pharmacists directly for those care
management services at a rate of between $30 to $50 per-member-per-month.
Where
Troy’s technology comes in is in developing a data infrastructure that will
allow the cross sharing of pharmacy and medical claims data to help improve
care coordination between a patient’s provider and their pharmacist.
“A lot
of times we just don’t know if a patient was discharged from the
hospital,” Abubakar said. “If we can improve that turnaround time and
reach them earlier, then we have a high chance of preventing readmission.”
Doctors,
in turn, can benefit from the insight that pharmacists provide to help build
better care plans that patients will be more likely to stick to.
In
order to ensure a standardized level of clinical services across its pharmacy
partners, Troy is working with Community Pharmacy Enhanced Services Network
(CPESN). The organization is a network of clinically integrated pharmacies
which provide enhanced clinical services meant to reinforce and support patient
care plans.
Troy is
using the National Average Drug Acquisition
Cost (NADAC) figures to help price its prescription drugs. The
NADAC reference data is a weekly estimate published by Medicaid of the average
drug invoice paid by independent and retail chain pharmacies collected through
surveys.
In
Troy’s model the NADAC numbers will be used to determine drug reimbursement and
pricing levels for pharmacists by adding a dispensing fee of $10 for generic
medications and $4 for branded drugs.
The
tabulation flips the way pharmacy contracts normally work, which are based off
of negotiated discounts from drug maker listing or wholesale prices.
“The
way it is today, you don’t know what the prescription is going to cost if
you’re senior, or if you’re a pharmacist you have no idea what you’re going to
get paid,” Simihaian said.
Troy’s
MA plan is being offered in 2019’s Open Enrollment period with a
modest 1,500 member first-year enrollment goal. The company’s plan is
launching in Iredell, Cabarrus, Rowan, Granville, and Robeson Counties in
North Carolina, which are relatively rural areas in which independent pharmacy
owners play a larger role in the community and have existing provider relationships.
Still,
it will be an uphill journey. Traditional insurers like UnitedHealthcare and
Humana dominate the Medicare Advantage space and upstarts like Devoted Health
and Clover Health have raised hundreds of millions of dollars as they try to edge
their way into the market.
Troy’s
$5 million Series A round pales in comparison to those numbers and the insurer
is still in the midst of building out its provider network in the communities
it wants to operate in.
Where Simihaian
sees his company’s advantage is through leveraging the existing trusted
relationships between patients and their pharmacists as a distribution and
promotional pathway for Troy’s plan.
While
Troy is initially working only with independent and community-based pharmacies
the hope is to eventually and drive better health by engaging more even larger
retail pharmacies in more care delivery.
“Repeating
the same old same old hasn’t given us better outcomes. We need to take
pharmacists outside of their box and leverage the touches they already have
with patients,” Abubakar said. “It’s a perfect storm, we’ve moved
from fee-for-service, to value based care and we need everybody on the bench
and all hands on deck.”
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