Purchaser Business Group on Health Launches New Company, Emsana Health, to Develop Solutions that Meet the Specific Needs of Large Employers
Frustrated by Unmet Needs and Out-of-Control Costs, National Employer Group Launches a New Company and its First Business Unit, EmsanaRx, a Pharmacy Benefit Manager Built by Employers, for Employers
The Purchaser Business Group on Health (PBGH), a nonprofit coalition of nearly 40 large, private employers and public health care purchasers committed to transforming health care nationwide, today announced the launch of Emsana Health, an independent company established to build health care products that meet the unique needs of large employers and their employees.
Designed to address the concerns of many U.S. employers that the health care services they buy are of uncertain quality and exorbitantly priced, Emsana Health launches today with its first business unit, EmsanaRx, a new pharmacy benefit manager (PBM) built by employers, for employers. Emsana Health will serve as an innovation studio to develop products designed with and for PBGH member organizations.
“Our members have asked us to use our unique position in the market and deep expertise with large employers to help them develop solutions for the pain points that aren’t being addressed by the status quo and to reshape the health care market so it delivers for them and the employees they cover,” said Elizabeth Mitchell, president and CEO of Purchaser Business Group on Health and Chair of the Emsana Health board. “Emsana Health and its first business unit, EmsanaRx, are a natural outgrowth of PBGH’s 30-plus years of work redesigning health care markets to reflect our members’ priorities.” PBGH is a majority owner of Emsana Health.
EmsanaRx is structured to address the lack of accountability of the PBM industry to its employer clients, who largely lack access to information about drug costs, true discounts and administrative fees that contribute to huge profits — predominantly for three PBMs dominating 80% of the market. Developed by PBGH with the backing of its members, EmsanaRx’s business incentives are structured to align with the interests of the large employers paying the bills.
Greg Baker, R.Ph. will lead Emsana Health’s new PBM, EmsanaRx, as its CEO. Baker, a clinical pharmacist by training, brings more than 25 years of pharmaceutical industry experience, most recently as a senior pharmacy consultant with Blue & Co., LLC and Vice President of Pharmacy Services at Premise Health.
“The pharmaceutical supply chain is broken. An opaque third-party payment system creates a profit haven for intermediaries whose interests are not aligned with their clients,” Baker said. “PBMs have leveraged their solutions to weave interdependent revenue streams that are built into the price of drugs paid for by employers, employees and their families.”
The new PBM offers large employers a level of transparency, flexibility and control not currently available in the market, with a fixed price per prescription and direct guidance from a dedicated clinical pharmacist account manager partnering with employers to design their own pharmacy network and modify their formulary.
“Customers will know exactly what they are paying for and can make strategic adjustments in real-time. For the first time, employers will own their own data and have the information and tools and clinical resources dedicated exclusively to their unique needs and patient populations,” Baker explained.
“Purchasers feel they’ve given the health care industry ample opportunity to reform the payment and delivery system, but it simply hasn’t happened,” Mitchell added. “Now, purchasers are taking bold action to improve health care value and quality. Emsana Health is here to help them make that happen.”