Combined companies create a leading pharmacy benefit optimizer to help benefits consultants and plan sponsors tackle tough challenges including cost, safety, and member satisfaction
RxBenefits, the employee benefits industry’s first technology-enabled pharmacy benefits optimizer (PBO), announced it has completed its previously announced acquisition of Confidio, a pharmacy benefits consulting firm.
RxBenefits and Confidio are both focused on solving a persistent industry issue – how to best maintain the affordability of a robust and competitive pharmacy benefit, complimented by an exceptional service experience. In the midst of the COVID-19 pandemic, with employers navigating a volatile economy and labor market, the deal strengthens the combined company’s value proposition to lower drug costs, improve employee safety and health outcomes, eliminate wasteful spending, and bolster employee engagement and retention.
As part of the deal, RxBenefits will be expanding its breadth of service offerings over the coming months to provide additional enhanced solutions, including:
Enhanced analytics to enable plan sponsors to select the most appropriate PBM;
Advanced clinical utilization management strategies to eliminate wasteful spending;
Enhanced member safety through optimized drug therapy;
Additional white-glove management services of the plan; and
Other long-term opportunities for cost savings.
“RxBenefits and Confidio share a common purpose and values. We are both committed to making it easier for benefits advisors to deliver optimized pharmacy benefits to the plan sponsors and combined three million member lives we serve and counting,” said Bryan Statham, Chief Executive Officer, RxBenefits. “Coming together as one team is a major milestone that will accelerate our long-term vision to bring value to what is a very underserved market. We couldn’t be more thrilled to begin working together to further transform the pharmacy benefits industry.”
“Today is an exciting day for Confidio as we join forces with RxBenefits, a like-minded organization committed to helping plan sponsors navigate the complex pharmacy benefits landscape,” said Scott Vogel, newly appointed Chief Strategy Officer, RxBenefits and Co-Founder and former Chief Executive Officer, Confidio. “Together, we look forward to providing even more comprehensive solutions that are laser focused on our clients most pressing strategic needs of addressing affordability and increasing health outcomes.”
In August of 2020, RxBenefits launched the first and only pharmacy benefits optimizer, or PBO, which combines advanced data science, market-leading purchasing power, and patient-centric clinical management strategies to help self-funded plan sponsors and their members achieve the best economic and health outcomes from their pharmacy benefits investment. With the client-aligned PBO model, RxBenefits has already saved self-funded employers an average of 26% the first year through contract savings alone, and an additional 3%-7% through utilization management programs, all with minimal member disruption. Together, RxBenefits and Confidio will collectively form the industry’s leading PBO and will be well positioned to drive unnecessary cost out of what is indisputably a very complex marketplace. The deal will further fuel innovation to protect clients against soaring Specialty medication costs and future drivers of trend.
Recognized on the Inc. 5000 list for three consecutive years, Confidio is well-known for two unique service offerings, Performance Pharmacy Solutions (PPS) and Confidio Consulting Service (CCS). PPS is a leveraged pharmacy management platform distributed exclusively through benefit advisors. CCS is a consulting practice through which Confidio has designed and deployed custom procurement, advisory, and audit solutions for the nation’s largest and most complex plan sponsors and health plans. By making the CCS solution available through its broker distribution channel, RxBenefits looks forward to helping benefits consultants meet emerging client requirements as they endeavor to move up market.
Piper Sandler acted as the exclusive financial advisor to Confidio.