RFP Process Timeline
| Phase | Duration | Activities |
|---|---|---|
| RFP issuance | Week 1 | Issue RFP to 5+ PBMs with claims data |
| Proposal period | Weeks 2–5 | PBMs develop proposals |
| Proposal evaluation | Weeks 6–7 | Evaluate proposals against criteria |
| Shortlisting | Week 8 | Select 2–3 finalists |
| Finalist evaluation | Weeks 9–11 | Detailed evaluation; reference checks; site visits |
| Negotiation | Weeks 12–14 | Contract negotiation with selected PBM |
| Contract execution | Week 15 | Execute contract; begin implementation |
Net Cost Comparison
Net cost comparison is the most important element of PBM proposal evaluation. Request a net cost analysis from each PBM using your actual claims data: total drug cost - rebates - other credits + administrative fees = net cost. Compare net costs across PBMs — not just administrative fees or rebate guarantees. The PBM with the lowest net cost is the best financial value.
Reference Checks
Pro Tip
Reference checks with current PBM clients are essential before selecting a finalist. Ask references: (1) What is the PBM's net cost performance vs. proposal? (2) How responsive is the account team? (3) What is the member satisfaction score? (4) Has the PBM proactively identified cost management opportunities? (5) Would you select this PBM again? References who answer "no" to the last question are a red flag.