Program Structure
- 1Identify eligible drugs: Specialty drugs with significant international price gaps
- 2Establish vendor relationship: Contract with an international drug sourcing vendor
- 3Design member incentive: Reduce member cost-sharing for drugs obtained internationally
- 4Implement opt-in process: Members voluntarily enroll in the international sourcing program
- 5Manage logistics: Vendor handles international pharmacy relationships, ordering, and delivery
- 6Monitor safety: Vendor ensures drugs are from licensed pharmacies in approved countries
Member Incentive Design
The member incentive is critical for program adoption. Common incentive structures: (1) $0 cost-sharing for drugs obtained internationally vs. standard cost-sharing domestically; (2) cash payment for switching to international sourcing; (3) reduced premium for members who use international sourcing for eligible drugs. The incentive must be large enough to motivate behavior change.
Vendor Selection
Pro Tip
Vendor selection is critical for international drug program success. Key vendor criteria: (1) pharmacy network — does the vendor have relationships with licensed pharmacies in Canada, the UK, and Australia?; (2) safety protocols — how does the vendor verify drug authenticity and quality?; (3) logistics — how does the vendor handle ordering, delivery, and cold chain management?; (4) member support — does the vendor provide member support for the transition?