COMPPHARMA ESTABLISHED TO PROVIDE SERVICES FOR WORKERS’ COMPENSATION PHARMACY BENEFIT MANAGERS (PBMs)
Regulatory and Legislative Database First Initiative for New Consortium of PBMs
Madison, Conn. (June 19, 2007) – CompPharma, LLC has been formed to enable Pharmacy Benefit Management (PBM) firms, specializing in workers’ compensation common industry, to share the cost of researching and developing solutions for industry-wide issues.
CompPharma’s first project is developing a 50-state database of laws and regulations affecting workers’ compensation PBMs. It has retained the national law firm of Lord Bissell & Brook, LLP (LLB) to create the database, monitor the legal landscape and regularly update the data.
“Member PBMs can access the database by subjects or states,” said Joseph Paduda, president of CompPharma. “It goes far beyond merely citing regulations to adding commentary and clarification.”
Members set research priorities, with the first round of research focused on mandatory generics, the definition of a pharmacy, and the licensure of PBMs and Third-Party Administrators. Workers’ compensation networks and pharmacies, and employer direction are also being addressed. The first phase of the database will be completed by this fall.
The database saves PBMs the time and cost of conducting this research, giving CompPharma members a head start on the legal implications of their existing or planned operations or plans, according to Lord Bissell & Brook Partner, Michael V. Coleman. “The database aids, but does not replace, PBMs’ legal counsel or compliance efforts,” he stressed.
CompPharma is investigating other issues that drive the costs of pharmacy in comp, such as capturing the first fill of workers’ comp prescriptions and working with manufacturers on the appropriate use of various medications.
“Pharmacy represents more than 14 percent of the comp medical bill, roughly $5 billion,” said Paduda. “We’ve created this organization to help PBMs working to find and implement real solutions to rapidly growing problems.”
Established by industry consultants Joseph Paduda and Helen Knight, CompPharma is a consortium of workers’ compensation PBMs active in workers compensation. Founding PBM members are Aetna Workers’ Comp Access, Cypress Care, Medical Services Company (MSC), and Progressive Medical Inc. Qualified PBMs can join CompPharma and can receive information by contacting Helen Knight, 813-837-1701 or Helen@KingKnight.com