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The drug discount and pricing industry was abuzz at the MDRP Conference this week. We’re in a moment of transformation–and the theme of many presentations and discussions revolved around how there are more questions than ever as this space becomes more complex. Between industry thought leaders, pharmaceutical changemakers, and technology providers, there was obvious energy and readiness for greater solutions to these complex problems within the drug discount space.
From a Kalderos perspective, it was also the launch of Truzo–our end-to-end drug discount management platform (but more on that later). As we reflect on the week, we wanted to summarize some highlights.
Mainstage session: From Chaos to Clarity: A Sustainable Approach to 340B
On Tuesday, our CEO, Angie Franks, took the main stage to voice a stark reality: the 340B program is nearing its breaking point, and we must act swiftly to prevent it. She started by framing where we stood as a country when 340B began in 1992 (Whitney Houston was #1 on the charts, typewriters were the machine of choice in the workplace, and we were limited to dial-up modems). So why have we maintained the way we think about managing the program all these years later? She highlighted the massive numbers and growth that 340B is seeing: 16.5% YoY growth in 2023, 129% cumulative growth since 2018, and a staggering $68B in 340B discounts annually (which means $8M in discounts every single hour). This growth leaves lots of room for unintended consequences. How are covered entities and manufacturers alike supposed to ensure policy adherence in an archaic model with numbers this big? We presented key learnings from primary research with CEs, healthcare executives, and policymakers, and everyone agreed on a few things:
- Vital reforms are needed to ensure the sustainability of these programs (74% of these executives believe 340B reform is necessary).
- There’s a need for greater transparency in these processes between all stakeholders, which means a source of verified information for all.
- Technology solutions are excited about the potential of technology to increase efficiency and reduce waste.
Angie called for more transparency to establish a foundation of trust between CEs and manufacturers – and noted it’s critical to get more patient benefits.
Solution session: How to introduce transparency in drug discounts with a unit-based model
Later in the day on Tuesday, Kalderos was the solution stage to launch our new platform, Truzo. Kate Flathers, VP of Product, Gavin Magaha, Director of Policy, and Ariel Pekelis, Sr. Product Manager all gave a jam-packed room a tour of the drug discount silos…and a new solution to solve them.
Gavin explained how all of the programs (MDRP, 340B, Commercial, and IRA’s Max Fair Price) operate differently because at their core they are different. What this leads to are operational, technological, and data silos. Kate dove further into this concept and highlighted what this means for stakeholder engagement, data management, claim submission, and policy. Then, she introduced our end-to-end drug discount platform as a way to look at solving that across the various models, whether prospective or retrospective.
Truzo is built on 4 key pillars: data submission, evaluation and calculation, payment, and dispute resolution. These 4 pillars are built on a solid foundation of data architecture and overlaid with analytics. Having all of this data under one roof means unit-level data, built-in compliance with program rules, and a transparent ledger for all parties.
Finally, Ariel wowed the crowd by showing this all in action – from CEs submitting their claims and designating contract pharmacies to manufacturers reviewing submissions and effectuating the payments. She reiterated how the landscape is only getting more complex, with increasing entities and more dollars at play, but the timelines for effectuating the programs are getting shorter, especially with the introduction of MFP. Truzo sits at the heart of this and helps make managing it all possible.
Fireside chat with Adam Fein and Angie Franks
We wrapped up our Truzo Tuesday with a Fireside Chat and happy hour reception, led by Adam Fein from Drug Channels Institute and CEO Angie. Adam and Angie discussed their views on how the current environment in 340B creates the potential for massive amounts of change. Specifically, they shared their observations about who the system is benefitting, where the cost is coming from, and how the introduction of IRA’s MFP may open the door for more transformation down the road. After questions from the audience, we enjoyed a reception in the beautiful Chicago Architectural Center and celebrated our launch amongst clients and partners across the industry.
It was an energizing week for all at MDRP. We enjoyed seeing so many of you and hearing your unique perspectives on the above topics. If you’re interested in learning more about any of the above topics and seeing Truzo in action, consider joining our upcoming webinar on October 9th. You can also find more information, including requesting a 1:1 conversation, here.
