Systems and methods for alternate pricing for prescription drugs

• US 8,060,379 B1
• Filed: 04/13/2008
• Issued: 11/15/2011
• Est. Priority Date: 04/13/2008
• Status: Active Grant

• Current Assignee: McKesson Corp.
• Original Assignee: Mckesson Financial Holdings Limited (McKesson Corp.)
• Inventors: Pinsonneault, Roger, Ringold, James Morgan
• Primary Examiner(s): Morgan; Robert
• Assistant Examiner(s): SOREY, ROBERT A
• Application Number:
  US12/101,997
• Time in Patent Office: 1,311 Days
• Field of Search: 705 2- 4
• US Class Current: 705/2
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/08 Insurance
• CPC Class Codes: G16H 20/10 relating to drugs or medications, e.g. for ensuring correct administration to patients
• CPC Class Codes: G16H 70/40 relating to drugs, e.g. their side effects or intended usage

Abstract

Systems and methods may be provided for alternate pricing. The systems and methods may include receiving first information associated with a first claim transaction, where the first information identifies a first drug, a first quantity of the first drug, and a first price for the first drug, determining a first product classification for the identified first drug, where the first product classification indicates that the identified first drug is a preferred drug, and updating an alternate pricing database with the first price for the first drug. The systems and methods may also include utilizing the alternate database to identify one or more lower-cost alternate drugs that are therapeutic alternatives for a requested drug. Customers may be provided with information regarding the identified lower-cost alternate drugs.

Claims

1. A method for alternate pricing, comprising:

receiving, from a pharmacy computer, first information associated with a first claim transaction, wherein the first information identifies a first drug, a first quantity of the first drug, and a first price for the first drug;

determining a first product classification for the identified first drug, wherein the first product classification indicates that the identified first drug is a preferred drug;

automatically updating an alternate pricing database with the first price for the first drug based at least in part on determining that the first price for the first drug does not exceed a previously stored price for the first drug in the alternate pricing database;

receiving, from a pharmacy computer, a second claim request, wherein the second claim request identifies a requested drug and a price for the requested drug, and further specifies a claims processing system as a destination of the second claim request;

identifying the first drug as a therapeutic alternative for the requested drug;

determining, based upon the first price for the first drug in the updated alternate pricing database, that the first drug is available at a lower cost than the requested drug;

determining a denial of the second claim request based upon the determination that the first drug is available at the lower cost than the requested drug; and

transmitting, to the pharmacy computer that sent the second claim request, a response to the second claim request, the response indicating the denial of the second claim request and further including an indication of availability of the first drug as the therapeutic alternative and pricing information associated with the first drug, and associated with the denial of the second claim request response, the second claim request is not delivered to its intended destination, the claims processing system;

wherein the prior steps are performed by a provider computer.

2. The method of claim 1, wherein identifying the first drug as the therapeutic alternative for the requested drug includes:

determining a therapeutic category for the requested drug, and

identifying one or more alternate drugs, including the first drug, in an alternate pricing database that are associated with the determined therapeutic category,

wherein the prior steps are performed by one or more provider computers.

3. The method of claim 2, wherein the alternate pricing database is dynamically updated based upon claim transactions between one or more pharmacy computers and one or more payor computers.

4. The method of claim 1, wherein prior to updating the alternate pricing database, the method further includes:

determining that the first quantity of the first drug is a standard quantity;

or

determining that the received first price is within a predetermined amount or predetermined percentage from an industry-established cost base of the first drug,

wherein the prior steps are performed by one or more provider computers.

5. The method of claim 1, wherein the first product classification indicates that the identified first drug is a preferred brand drug or a preferred generic drug.

6. The method of claim 1, further comprising:

receiving second information associated with a second claim transaction, wherein the second information identifies a second drug, a second quantity of the second drug, and a second price for the second drug,

determining that the second drug is a non-preferred drug or the second quantity is a non-standard quantity; and

based upon the determining that the second drug is the non-preferred drug or the second quantity is the non-standard quantity, the alternate database is not updated with the second price for the second drug,

wherein the prior steps are performed by one or more provider computers.

7. The method of claim 1, wherein the second response further includes an override code, wherein the override code allows the pharmacy computer to resubmit the second claim request for adjudication by a payor.

8. The method of claim 1, wherein the first price for the first drug is a Usual and Customary (U&

C) price for the first drug.

9. The method of claim 1, wherein the second claim request further includes a second quantity of the requested drug, and further comprising:

determining that the second quantity of the requested drug is a standard quantity before identifying the first drug as the therapeutic alternative for the requested drug,

wherein the prior step is performed by one or more provider computers.

10. The method of claim 1, wherein the second claim request is associated with a customer of a pharmacy associated with the pharmacy computer.

11. A system comprising:

a switch provider computer that interconnects a pharmacy computer and a payor computer, wherein the switch provider computer is operative to route a first claim transaction between the pharmacy computer and the payor computer; and

an alternate pricing qualification module in communication with the switch provider computer, the alternate pricing qualification module being implemented as computer-executable instructions of the switch provider computer or another computer in communication with the switch provider computer, wherein the alternate pricing qualification module is executed by the switch provider computer or another computer to;

receive, from the pharmacy computer, first information associated with the first claim transaction, wherein the first information identifies a first drug, a first quantity of the first drug, and a first price for the first drug;

determine a first product classification for the identified first drug, wherein the first product classification indicates that the identified first drug is a preferred drug;

automatically update an alternate pricing database with the first price for the first drug based at least in part on determining that the first price for the first drug does not exceed a previously stored price for the first drug in the alternate pricing database;

receive, from a pharmacy computer, a second claim request, wherein the second claim request identifies a requested drug and a price for the requested drug;

identify the first drug as a therapeutic alternative for the requested drug;

determine, based upon the first price for the first drug in the updated alternate pricing database, that the first drug is available at a lower cost than the requested drug;

determine a denial of the second claim request based upon the determination that the first drug is available at the lower cost than the requested drug; and

transmit, to the pharmacy computer that sent the second claim request, a response to the second claim request, the response indicating the denial of the second claim request and further including an indication of availability of the first drug as the therapeutic alternative and pricing information associated with the first drug, and associated with the denial of the second claim request response, the second claim request is not delivered to its intended destination, the claims processing system.

12. The system of claim 11, wherein the first drug is identified as the therapeutic alternative for the requested drug by:

determining a therapeutic category for the requested drug, and

identifying one or more alternate drugs, including the first drug, in an alternate pricing database that are associated with the determined therapeutic category.

13. The system of claim 12, wherein the alternate pricing database is dynamically updated based upon claim transactions between one or more pharmacy computers and one or more payor computers.

14. The system of claim 11, wherein prior to updating the alternate pricing database, the alternate pricing qualification module is further executed by the switch provider computer or another computer to:

determine that the first quantity of the first drug is a standard quantity, or

determine that the received first price is within a predetermined amount or percentage from an industry-established cost base of the first drug.

15. The system of claim 11, wherein the first product classification indicates that the identified first drug is a preferred brand drug or a preferred generic drug.

16. The system of claim 11, wherein the switch provider computer is further operative to route a second claim transaction between the pharmacy computer and the payor computer, wherein the alternate price qualification module is operative to:

receive second information associated with the second claim transaction from the pharmacy, wherein the second information identifies a second drug, a second quantity of the second drug, and a second price for the second drug,

determine that the second drug is a non-preferred drug or the second quantity is a non-standard quantity,

based upon the determination that the second drug is the non-preferred drug or the second quantity is the non-standard quantity, the alternate database is not updated with the second price for the second drug.

17. The system of claim 11, wherein the second response further includes an override code, wherein the override code allows the pharmacy computer to resubmit the second claim request for adjudication by a payor.

18. The system of claim 11, wherein the first price for the first drug is a Usual and Customary (U&

C) price for the first drug.

19. The system of claim 11, wherein the second claim request further includes a second quantity of the requested drug, and wherein the alternate pricing qualification module is operative to:

determine that the second quantity of the requested drug is a standard quantity before identifying the first drug as the therapeutic alternative for the requested drug.

20. The system of claim 11, wherein the second claim request is associated with a customer of a pharmacy associated with the pharmacy computer.