National Drug Purchasing Coalition and Express Scripts Team Up to Create New Pharmacy Benefit Design

ST. LOUIS, Oct. 23, 2018 - The National Drug Purchasing Coalition (NDPC), an employer-led coalition, is announcing the Total Performance ManagementSM solution for its members: a transformative new way for employers to provide pharmacy benefits that guarantees pricing transparency, alignment on outcomes, and accountability for performance. Express Scripts (NASDAQ: ESRX), the nation's leading pharmacy benefit manager, worked closely with the NDPC to develop the innovative solution.  NDPC member companies include PepsiCo, Inc.; ExxonMobil; Chevron Corporation; Sodexo; Yum! Brands, Inc.; Solvay USA Inc., and others.

The Total Performance Management offering is a novel pharmacy benefit model providing employers with more transparency to the true costs of prescription medications, alignment with Express Scripts on clinical, service, and financial performance goals for the plan, and accountability from Express Scripts for delivering on those goals.

"The Total Performance Management solution is a breakthrough in pharmacy benefit management. It represents a comprehensive, pay-for-performance approach to driving clinical quality and affordability.  It aligns the PBM compensation to our goals as an employer – improving the health of our employees while keeping costs sustainable for employees and the company," said Cheryl Staton, Zone Manager, North America Compensation & Benefits, Solvay USAInc., and chair, Steering Committee, National Drug Purchasing Coalition.

The new model has two areas of focus:

  • Pay-for-performance for clinical and administrative plan management that improves patient and plan outcomes. Express Scripts will demonstrate, definitively, that it does not just buy better, but manages trend and spend better. Express Scripts' ability to deliver clinical and financial outcomes is directly tied to its compensation. Pay-for-performance means Express Scripts will take on more risk from clients, and be rewarded only when it delivers on agreed-to commitments.
  • Clients pay what Express Scripts pays for prescription drugs plus administrative fees ensuring clients have the transparency they want. By adding clarity to costs, our clients will have a more direct line of sight to the true cost of drugs net of all manufacturer discounts, rebates and incentives.

"In working with NDPC, we will tie our performance directly to plan goals, and leveraging our patient-centered approach to pharmacy care and deep data insights to measurably and meaningfully improve the health of the member companies employees and dependents," said Tim Wentworth, President and CEO of Express Scripts.  "Pharmacy is the most used benefit in healthcare and offers the most touchpoints, the most teachable moments, with patient and physicians. With our unique combination of specialized care, data insights and innovative solutions, we help people achieve better health while bending the cost curve"

The NDPC is an exclusive group of the nation's largest, most forward-thinking employers that use their collective purchasing power to negotiate high quality, cost-effective and innovative solutions for managing pharmacy benefits. Founded in 1996, the NDPC is the industry's first premier employer-led purchasing coalition in the industry. The NDPC consist of 18 companies representing diverse sectors, from energy to consumer goods and entertainment, with a combined prescription drug spend of more than $1 billion. Member companies are contracted on an individual basis and have full plan decision autonomy.

The NDPC works with Express Scripts to deliver solutions and services that make medicine more affordable and accessible. It's a powerful partnership that delivers better performance for NDPC companies compared to other employers. The NDPC is committed to reducing pharmacy benefit costs and offering better care for plan members.

"Our innovative collaboration with the NDPC provides a real solution to better managing pharmacy spend," said Glen Stettin, M.D., Senior Vice President, Clinical, Research and New Solutions of Express Scripts. "It aligns how and where our clients use their pharmacy dollars to achieve sustained clinical and financial goals. Together, we can focus on improving member health and increasing the efficiency of their total healthcare spend."

With an extra focus, initially, on five key therapeutic areas – diabetes, cardiovascular, pulmonary, autoimmune inflammatory treatments and pain/opioids – therapeutic areas that matter most to payers, Express Scripts is holding itself directly accountable for improving clinical outcomes and wisely managing drug spend. As the model evolves, more therapeutic areas will be added to create more value for clients and their plan members.

"Some may talk about transforming the delivery of pharmacy care, but the NDPC and Express Scripts are the only ones truly doing so," said Staton. "As the marketplace becomes more competitive, the ability to offer robust benefits becomes more important. Having greater transparency, lower costs and better outcomes, we are well-positioned to gain greater clinical and financial value, while delivering on what matters most: our members receiving outstanding care and achieving better outcomes."

For more information on Total Performance Management or joining NDPC, visit or contact

Advantages of Joining NDPC

Be part of the industry's first premier employer-led pharmacy benefits coalition and enjoy reduced costs and much more:

  • No membership dues or fees
  • Ability to negotiate collectively while contracting individually
  • Comprehensive guarantees for pricing and transparency, account and member services, and clinical and financial performance
  • Complete autonomy and control over plan design and drug coverage
  • Dedicated, experienced Express Scripts account team
  • Expertise of a leading benefits consulting firm for advice, PBM oversight and negotiations
  • Best in class drug trend

About Express Scripts

Express Scripts is a healthcare opportunity company. Empowered by our legacy as an industry innovator, we dare to imagine – and deliver – a better healthcare system with improved health outcomes and lower costs. From pharmacy and medical benefits management, to specialty pharmacy care and everything in between – we uncover opportunities to make healthcare work better.

Our home base is St. Louis, but our reach extends to millions of Americans across the nation. We stand alongside our clients and partners, collaborating to develop personalized solutions that make a meaningful difference in the lives of those we serve.

We believe healthcare can do more. We are Champions For BetterSM.

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