San Leandro, CA – VIVIO, a public benefit corporation reinventing the use of drug trial data in care delivery, announces a relationship with Mark Cuban Cost Plus Drug Company (Cost Plus Drugs) to acquire specialty drugs for less. Since Cost Plus Drugs and VIVIO are Public Benefit Corporations (PBCs), improving public health by lowering the cost of healthcare is as important as the bottom line.
America spends $500 Billion a year on prescription drugs. Less than 2% of prescriptions are written for ‘specialty’ drugs, but these account for $250 Billion, half of America’s total drug spend. Clinical trials and real-world evidence demonstrate that suboptimal drugs are being prescribed frequently. This means we pay for drugs that often don’t work because no one is asking the question, what do these drugs do? VIVIO’s team of clinicians and researchers match drug trial evidence to individual patient data, which improves outcomes, reduces side effects, and lowers member, employer, and health plan drug costs.
“The event that led to finalizing the collaboration between VIVIO and Cost Plus Drugs is as horrific as it is incredibly uplifting,” said Mark Cuban. “Last week I was contacted by a friend from Indiana University who mentioned that a mutual friend was in a dire situation. The mutual friend was quoted a price of $3,000 per month for a generic specialty drug called droxidopa. He asked if Cost Plus Drugs could find an affordable source of the medication.”
The Cost Plus Drugs team went to work immediately, says Cuban. Within a week, Cost Plus Drugs had sourced the same medication at a price of $75 for a three-month supply, less than 1% of the cost Cuban’s friend was paying. “I mentioned this in an interview with Trevor Noah on The Daily Show and this caught the attention of Pramod John, the CEO of VIVIO. As it turns out, VIVIO also has patients taking droxidopa. I am excited to say our relationship was finalized in a matter of days,” said Cuban. “Now VIVIO patients will have access to pay far less for droxidopa and many other medications when using Cost Plus Drugs. I am so looking forward to us working together to benefit patients everywhere!”
“As a Public Benefit Corporation, the interests of VIVIO, our patients, and our employer and health plan customers must be aligned. They want better outcomes and lower costs, and so do we. Unlike PBMs, we don’t have a formulary or own any pharmacies or provider services. Instead, our sole business is to use data to ensure drugs are working for each patient and are acquired at the lowest cost,” says Pramod John, VIVIO CEO. “We seek to partner with other like-minded innovators to drive meaningful change to an industry that desperately needs it but doesn’t want it. Our relationship with Cost Plus Drugs allows our customers to stop overpaying for drugs, and that’s an important part of our mission.”
“A foundational principle for Cost Plus Drugs and VIVIO is fairness and transparency,” says Alex Oshmyansky, CEO of Cost Plus Drugs. “It is never fair to pay $3K for a drug that’s available for $21 or to pay for a drug without the data supporting its use. This causes inflation, premium increases, and a bloated, inefficient $4.2 Trillion health system.”
About VIVIO Health, a Public Benefit Corporation
VIVIO Precision Care™ uses data to fix the big unsolved problem of paying for expensive drug therapies that don’t work for members while causing side effects. VIVIO helps self-insured employers and health plans ensure their members are on the right drugs while not overpaying for them. In 2021, VIVIO customers’ specialty drug spend was 65% lower than national benchmarks.
About Mark Cuban Cost Plus Drug Company, a Public Benefit Corporation
Cost Plus Drugs aims to change the way the pharmaceutical industry operates. As a public-benefit corporation, its social mission of improving public health is just as important as the bottom line. Cost Plus Drugs transparently charges a standard markup on every drug it sells. The costplusdrugs.com online pharmacy launched in January 2022 now carries nearly 1,000 prescription products, delivered by mail to thousands of happy customers every day. Cost Plus Drugs works with health plans, managed-care organizations, pharmacy benefits managers (PBMs), and self-insured employers to bring these same savings to employer-sponsored benefit plans nationwide.
The original press release can be found at: http://www.prweb.com/releases/2022/10/prweb18961234.htm
We are thrilled to announce that Lisa Zeitel, former Coalition & National Pharmacy Practice Lead for Aon, has joined our advisory board. During her tenure at Aon, she oversaw the fastest growing pharmacy purchasing coalition in the US, representing over $4.2B in drug spend.
Lisa is a nationally recognized healthcare and pharmacy benefit expert with a proven track record of building, overseeing, and advising innovative pharmacy purchasing coalitions and solutions for self-insured plan sponsors. Most recently, she was SVP, Strategic Coalition Lead for Aon’s National Pharmacy Practice. Lisa started out her career in the consulting industry at Mercer where she spent 13 years on both medical and pharmacy benefits. Selected by Business Insurance as a “Women to Watch” in the insurance, risk management, and employee benefits industries, Lisa has distinguished herself as a masterful negotiator and a passionate, highly effective, results-driven client advocate.
Our analysis indicates that Alternative Funding Programs which exclude specialty drugs from coverage and then use Patient Assistance Programs for funding are exposing employers and employees to ERISA and IRS risks and violations. More importantly it is likely a violation of fiduciary responsibility for self-funded plans. See the details of the analysis below.
VIVIO’s CEO Pramod John had an opportunity to speak with the FTC during their Listening Forum on the impacts of healthcare consolidation.
I am Pramod John, CEO of VIVIO. Today we would like to advocate for the 314M Americans who don’t work for the US healthcare system and who pay for the most inefficient healthcare system in the world.
Americans are 4% of the world’s population but spend 49% of all global healthcare dollars. Said another way, we spend as much on healthcare as 96% of the world’s population. This is in stark contrast to the America that has been the lighthouse for free markets, with the result being that we pay some of the lowest prices in the world for almost every good or service, except healthcare, where we are the worst of the worst.
This inefficiency has its root in the belief that this is a market dysfunction problem. As insiders from the industry, we disagree with the notion that healthcare has a market. Instead, we have watched the chess game unfold over the past several decades between health plans whose customers were supposed to be consumers but are providers and provider systems that are shielded from competition. The result has been the massive consolidation of health plans, PBMs and Health Systems. The repercussion has been vertical and horizontal monopolies of health plans and systems that now control the market. Of course, the nuance is that they aren’t monopolies but rather oligopolies.
I previously worked for one of these oligopolists, where the industry mantra was ‘don’t do anything to start a pricing war; it would hurt us all.’ The scale and capital of these organizations allow them to influence laws that benefit their industries and prevent competition using laws, lobbies, and ‘dumping’, which prevent any real competition or innovation. The issue isn’t any of the individual entities themselves but the business models, which lead to ‘less’ competition at scale rather than the opposite.
When the ACA required that every American have healthcare coverage without any regard for the costs of the services themselves, it effectively wrote a national one-sided market into law. For a market to function, the most important mechanism is the power to say ‘no.’ Today, we neither have a single-payer system nor a free market; instead, we have the worst system possible.
We implore the FTC, DOJ, and lawmakers to consider deeply the actual dynamics of these one-sided ‘markets’ and update our antiquated laws to reflect reality and break up the monopolies that prevent competition. Please do something on behalf of the 314M Americans who aren’t listening to this hearing but are most impacted by it.
As a Public Benefit Company with a mission of ensuring that every patient is on an effective therapy at a fair market cost, we believe that regulatory agencies such as the FTC and DOJ have a responsibility to break up the structural monopolies that PBMs, Provider Systems and Health plans have created. These monopolies have resulted in 4% of the world’s population, who are Americans, paying 49% of global healthcare costs.
Pramod John, CEO, and Bhargav Raman, M.D., director, clinical product, at VIVIO Health, discuss how their system can match patients to therapies based on data rather than a formulary.
As a Public Benefit Company with a mission of ensuring that every patient is on an effective therapy at a fair market cost, we are thrilled to announce that Marcus Osborne has joined our Advisory Board to help us get there. Marcus has a passion for working on big problems and there is no bigger problem than the waste of billions on therapies that don’t work and often harm patients.
Marcus previously served as Senior Vice President of Health Transformation at Walmart where he was focused on furthering Walmart’s goal of improving the healthcare industry in the U.S. by increasing access and affordability in the system for consumers, helping to launch Walmart Health and other key health initiatives. Prior to joining Walmart in 2007, Osborne served as the Chief Financial Officer of the Clinton Foundation Health Access Initiative, helping increase access to HIV/AIDS treatment in the developing world, and as a Senior Management Consultant for Alliance Consulting Group in Boston, Massachusetts. He attended the Harvard Business School and received his Masters in Business Administration, graduating with honors.
Trials designs often don’t tell us what we want to know, is A better than B? Check out this article from VIVIO team member Bishal Gyawali et. al. on the gaming of metastatic prostate cancer drug trials. The Medpage article has a link to the article.
Relentless Health Value host Stacey Richter talks with with Pramod John about drug formularies and rebates and why focusing on actual patient outcomes leads to broader access and lower costs.
Relentless Health Value host Stacey Richter talks with with Pramod John about the reality of specialty drugs and what the terms efficacy and effectiveness really mean because they might not mean what you think they mean.