Navitus Health Solutions’ Rebates Outperform Contractual Guarantees – Yielding Nearly $400,000 in Additional Savings for Member Employers

In the last edition of The Catalyst BHCG reported the first four member employers that moved to Navitus Health Solutions in 2019 for Pharmacy Benefit Management (PBM) services had reduced their pharmacy spend between 11 and 55 percent, compared to 2018. One factor for this decreasing pharmacy spend was Navitus’s unique approach related to rebates.

In the contracts between Navitus and BHCG member employers – as with most PBM-employer contacts – Navitus guarantees a specific dollar amount in rebates received from pharmaceutical manufacturers per subscription filled, which is then returned to the employer. Unlike most other PBMs however, Navitus returns the total dollar value of the rebates they receive to the employer, not just the contractually guaranteed amount. This unique arrangement resulted in these four member employers receiving nearly $400,000 more in rebates than they would have received had their contract limited the rebates strictly to the guaranteed rebate amount.

In 2020 several more existing member employers and a number of new members moved to Navitus and more are expected to join them in 2021. BHCG anticipates being able to report similar savings for these member employers in the coming years.

Navitus is a full pass-through pharmacy benefit management solution. As such, Navitus gives clients 100 percent of all rebates it receives.  This is another prime example of how Navitus’s unique business model, which aligns incentives with the best interests of BHCG member employers, yields significant savings for its clients.