Mark Cuban Cost Plus Drug Company, Expion team to take on pharmacy costs

Photo: RUNSTUDIO/Getty Images

In a strategic alliance, Mark Cuban Cost Plus Drug Company said it would be teaming with pricing technology company Expion Health in an effort to address the rising costs of specialty drugs.

The idea is that the pricing capabilities of Cost Plus drugs will be integrated into Expion's product suite. Expion Health CEO Karin Humphrey said this will allow the company to expand its search capabilities and increase the transparency of pharmacy cost management.

"This collaboration echoes our ambition to explore different pricing channels and offer better cost options for consumers," she said.

WHAT'S THE IMPACT?

The need for creative solutions to the cost dilemma is exemplified by internal data showing specialty drugs account for about 51% of pharmacy spending.

Expion's offering, called the Special Navigator solution, will be enhanced with Cost Plus Drugs' pricing approach, which the companies expect will equip payers with the necessary means to navigate the complex drug pricing landscape.

Alex Oshmyansky, CEO of Mark Cuban Cost Plus Drug Company, said via statement that consumers will get a fairer price, along with the convenience of medicine delivered to their homes.

"Cost Plus Drugs and Expion Health share the same goal of providing consumers with the lowest possible price for their prescription drugs," he said.

Expion Chief Client Officer Chris Westbrook said that, in an environment where specialty drug prices are skyrocketing, "our relationship with Cost Plus Drugs constitutes our commitment to providing efficient, cost-effective solutions," adding that the move could foster optimism for faster drug solutions.

THE LARGER TREND

Mark Cuban Cost Plus Drug Company has been attempting to address drug pricing this year. 

In September it was announced that Salt Lake City-based Select Health and its pharmacy benefits manager Scripius was among the first health plans in the U.S. to provide member access to Mark Cuban Cost Plus Drug Company, meaning members would have direct access to the prescription drug service.

The partnership grew out of a philosophical alignment between the companies, with each citing the desire to provide a simple and transparent process to ensure people can access needed prescription medications while securing the best pricing.

Through the relationship, Select Health members have access to more than 1,000 prescription products at potentially lower prices than traditional pharmacy locations. 

Last month, Express Scripts announced a new pharmacy network option that offered "cost plus" drug pricing for employers and health plans. 

Last year, AHIP released findings showing that on average, hospitals charge twice the price for certain drugs, compared to specialty pharmacies, which demands approaches that shield patients, families and employers from high drug costs.

The study focused on drugs that are administered in a hospital or physician's office, which the insurer advocacy group claimed is an often-overlooked opportunity to improve healthcare affordability while ensuring patient safety.

While prescription medication prices are no longer the fastest-growing commodity or service, prescription drug costs have still increased 2.5% since the beginning of the COVID-19 pandemic, according to data from GoodRx.

Twitter: @JELagasse
Email the writer: Jeff.Lagasse@himssmedia.com