Your Plan may retain a consulting firm to assist your Plan in (i) conducting PBM RFPs, (ii) conducting PBM audits, or (iii) drafting, negotiating or amending your PBM contract.
Unfortunately, unbeknownst to you and most other Plans, the consulting firm industry is plagued by conflicts of interest. In fact, most consulting firms have undisclosed brokerage relationships with PBMs, and many consulting firms are receiving large amounts of money from PBMs.
Accordingly, if your Plan is currently relying on a consulting firm – or is considering retaining a consulting firm – it’s imperative that you require the consulting firm to execute a Conflict of Interest Disclosure Form & Agreement.
Pharmacy Benefit Consultants has drafted a model Form for your Plan to use for free:
Note: There are two parts to this Form: A “disclosure” section that requires the consulting firm to identify all existing relationships that constitute conflicts. And an “agreement” section that obligates the consulting firm to reimburse all fees that it receives from your Plan – as well as pay a liquidated damages penalty – if the consulting firm fails to accurately disclose its conflicts. Any Form you use should contain both sections.
We urge your Plan to take advantage of this Form: If your Plan is already using a consulting firm, and the firm was never vetted for conflicts, vet it now. It’s never too late to learn whether your consulting firm has undisclosed relationships that may cause it to act against your Plan’s interests.
If your Plan is considering retaining a new consulting firm – including ours – require it to execute a Conflict of Interest Disclosure Form & Agreement. If the firm won’t execute the document, you’ll know you probably shouldn’t retain it. After all, if the firm has conflicts and can’t act solely and exclusively in your Plan’s interests, why would your Plan want to use such a firm.
By requiring the execution of a Conflict of Interest Disclosure Form & Agreement, your Plan – and other Plans like yours – will also change the marketplace. Consulting firms will know they must end their conflicts if they want to remain in business.