Self-Funded Ending Pharmaceutical Price Gouging, with Jake Frenz
Oct 29, 2024
Jake Frenz, Founder and CEO of SmithRx and former Marine, dives deep into the challenges of pharmacy benefit management. He shares insights on the need for transparency to combat pharmaceutical price gouging. Inspired by Mark Cuban's Cost Plus Drugs, Jake discusses innovative ways to make medications more affordable. He also emphasizes the importance of consumer-driven healthcare and potential solutions for funding groundbreaking gene therapies. Tune in for a candid conversation about reshaping the future of healthcare in America!
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Use A Single Aligned Fee
- Build an aligned PBM business model where net revenue is a per-member-per-month administrative fee.
- This removes incentives to profit from higher drug costs and drives transparent, pass-through solutions.
A Slow-Build Watershed
- We may be approaching a 'watershed' moment where widespread awareness, lawsuits, and market entrants force systemic change.
- Real transformation will take years and create a new, incomparable category of care.
Define Lowest Net Cost
- 'Lowest net cost' means finding the cheapest end-to-end supply chain for a drug, not the sticker price.
- Biosimilars and Cost Plus deals can cut effective yearly costs from tens of thousands to a few thousand dollars.