FEP_DrugCosts_230627
Speaker(s): Announcer
Date: June 27, 2023
Length: 4 minutes, 3 seconds


Visual:
Blue How To
Understanding Your Prescription Drug Costs
Brought to you by 
BlueCross BlueShield
Federal Employee Program 
fepblue.org


Visual:
On screen text: Why do your prescriptions cost what they do?


Visual:
Animation of an old family photo with parents and their child, who is wearing glasses. The father is holding a card.


Announcer: 
The Blue Cross and Blue Shield Federal Employee Program, or simply FEP, has been committed to providing federal employees and retirees with quality health insurance since 1960. 


Visual:
Close up of the FEP card held by the father.
Animation of a Rx logo on the card being circled, and Rx prescription bags and prescription drug bottles around the card.


Announcer:
Part of this commitment includes providing comprehensive prescription drug coverage at an affordable price. We also want to make sure you understand your prescription drug costs and what we do to help keep your out-of-pocket costs low for the medications you and your family need. 


Visual:
On screen text: Prescription Drugs Costs.
Animation of an elderly man holding a prescription drug bag and being surprised by the receipt.


Announcer:
If you've taken a prescription drug for several years, you've probably noticed that the cost has risen over time. You're not alone. 


Visual:
On screen text: Source: Healthline, January 2020.
Animations of a calendar with flipped pages, and a pillbox illustrating a 5% increase.


Announcer:
According to some experts, prescription drug costs go up 5% a year on average. But sometimes it can even go up by hundreds of dollars at a time. And it's not just for brand-name prescription drugs. 


Visual:
Animation of a brand-name prescription drug bottle with a price tag of three dollar signs, and a generic drug bottle with a price tag of two dollar signs.


Announcer:
Many generic drugs, which are usually cheaper, are also seeing price increases each year. But why? And what can you do about it? 


Visual:
On screen text: A Closer Look at the Prescription Drug Supply Chain.


Announcer:
First, we need to take a look at the prescription drug supply chain to understand how they are priced. 


Visual:
Animation of multiple buildings being connected to each other.


Announcer:
You should know that the way prescription drugs are priced is not a simple or straightforward process. In fact, it can be quite complex. That's part of the reason why drugs can be so expensive. But we'll help explain how it works. 


Visual:
Close up of the first building, named Pharmaceuticals.


Announcer:
Different organizations make up the prescription drug supply chain. It starts with the pharmaceutical companies. They make the drugs and set the list price for each one. 


Visual:
Close up of the second building, named Wholesaler.


Announcer:
Then there are the wholesalers. They transport the drugs and sell them to the pharmacies. 


Visual:
Animation of a truck driving from the Wholesaler building to the third building, named Pharmacy.
Animation of a prescription drug bag and a wallet next to the pharmacy.


Announcer:
The pharmacy is where you get your prescription filled and pay for your portion of the cost. The pharmacy sends a bill to your health plan to pay for the rest. 


Visual:
Close up of the fourth building, named Pharmacy benefits manager, with a pop-up vignette showing an employee from that building.


Announcer:
There are also pharmacy benefit managers, or PBMs. A PBM can work for a large corporation, a government agency, or a health plan. Their main role is to negotiate pricing with the drug makers and pharmacies, which helps determine what you'll pay for a drug. 


Visual:
Animation of a rebate with three dollar signs.


Announcer:
Part of their negotiation includes getting rebates from the drug makers to help lower prescription costs. 


Visual:
Animation of two dollar signs from the rebate going to the PBM building, and one dollar sign going to the employee.


Announcer:
Usually, the PBMs take a portion of the rebate for themselves and pass another piece on to the health plan or their employer. 


Visual:
On screen text: How FEP Keeps Prescription Costs Lower.
Animation of a PBM connected to a FEP employee.


Announcer:
FEP handles rebates differently. We work with our pharmacy benefit manager to maximize member cost savings with rebates. 


Visual:
On screen text: This point-of-sale transaction only applies to prescriptions purchased via the Retail Pharmacy Program.
Animation of an elderly man presenting his FEP member ID card to a pharmacist, which gives him prescription drugs and keeps the rebate on her side.


Announcer:
When you fill a prescription at a retail pharmacy, we pass the savings on to you from rebates at the point of sale, which lowers your out-of-pocket costs. 


Visual:
Animation of the PBM and FEB employee, and the rebate being split into a FEP card.


Announcer:
Unlike most arrangements, the PBM does not take a portion of the rebate for themselves, and FEP doesn't keep the savings, either. All of the savings are passed on to our members. 


Visual:
On screen text: Prescription Drug Cost Tool.


Announcer:
When it comes to your prescription drugs, it pays to have the right information. 


Visual:
Animation of the elderly man on his computer, checking the FEP website.


Announcer:
That's why we created the Prescription Drug Cost Tool. You can see which drugs are covered under your plan, compare the costs for brand-name and generic medications, what you'll pay if you use our Mail Service to have drugs delivered to your home, and more. 


Visual:
Animation of the man looking at his laptop and getting a bag of medications on his desk, which makes him smile.
On screen text: The Mail Service Pharmacy is available to Standard Option members and Basic Option members with Medicare Part B primary.


Announcer:
Try it for yourself at fepblue.org/rxcosts. 


Visual:
Animation of the FEP website on a computer screen.


Visual:
On screen text: Civica Rx.
Animation of an elderly man presenting his FEP member ID card to a pharmacist, which gives him prescription drugs.


Announcer:
We believe everyone should have access to safe, effective, and essential prescription medications when they need them at a price they can afford. 


Visual:
Animation of a Civica building.


Announcer:
That's why Blue Cross and Blue Shield has partnered with nonprofit Civica Rx to help produce more affordable and reliable supplies of generic drugs.


Visual:
Animation of the Civica building, previously named pharmaceuticals, being connected to the wholesaler, pharmacy, and pharmacy benefits manager buildings.


Announcer: 
Together, we’ve worked to make generic drugs more available, along with helping consumers like you save hundreds of millions of dollars on their prescription costs.


Visual:
Animation of the elderly man getting his prescription drugs from his pharmacist, with the logos for Civica and BlueCross BlueShield Federal Employee Program at the bottom. The man looks happy and gives a thumbs up.


Announcer: 
This partnership is just one of the ways we're ensuring that our members’ needs always come first. 


Visual:
Animation of a FEP employee being connected to different pharmacists and healthcare providers.


Announcer: 
We're also working with other leaders in the healthcare industry to develop even more innovative solutions and programs to make quality healthcare more affordable for all. 


Visual:
On screen text: Prescription Drugs.
Animation of a hand holding a prescription drug bottle, and another hand scrolling through the FEP website on a tablet.


Announcer: 
As your partner in health, we want you to stay aware and informed of your prescription costs. And if you're taking any prescriptions, you can see if your drug is covered under your plan by going to fepblue.org/formulary. 


Visual:
Animation of the elderly man holding his prescription drug bag, smiling, and giving a thumbs up.


Announcer:
We know health insurance can be complicated, but you can always count on FEP to be with you every step of the way.


Visual:
Blue How To
Understanding Your Prescription Drug Costs.


End credits:
Brought to you by 
BlueCross BlueShield
Federal Employee Program 
fepblue.org