When a Fortune 100 company breaks the mold on anything it is news. Recently, Tyson Foods made a mold-breaking move and showed it was not averse to playing chicken with the PBM industry (poultry pun… if ya hadn’t noticed).
As noted in the article below, Tyson filed for divorce with its PBM, Caremark, and partnered up with Rightway, a startup that was founded only in 2017. Their model is radically different from the decades old PBM model.
The first big difference is that Rightway only charges a defined per member management fee.
What, no finagling with obscure (and often usurious) formulae to determine profits?
That is nothing short of a transformation of the oligopolistic PBM pantheon.
But wait…. there’s more…. since Rightway doesn’t profit via margins on sales, it can pass through drug cost… at cost!
Just these two major differentiators could revolutionize the PBM industry and calm the pressures for stiff regulation on the legacy PBMs now bubbling to the surface in Washington.
By Paige MinemyerJan 24, 2024
Amid an ongoing conversation about pharmacy benefit managers and the role they play in rising drug costs, a Fortune 100 company is making the jump from one of the industry’s biggest players to a startup.
Tyson Foods will be one of the first major companies to drop one of the so-called “big three” of the PBM industry by moving on from its long-term contract with CVS Health’s Caremark to sign on with Rightway, a startup that was founded in 2017.
The new contract went into effect on Jan. 1.