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F Case Study

Apples to Apples

The Challenge

Our team was pulled into a bidding process for a 10,000 member union in the northeast during the evaluation phase of an RFP for pharmacy benefit management. Our team was tasked with evaluating each of five bids from three different providers to find the best value for the client.

The Approach

Once classification for this bid was normalized it was found that the three bidders overpromised rebates by between $98,720 and $52,645 each.

Each bidder evaluated the incumbent experience differently to maximize the apparent value of their bid. In one case a bidder priced multiple high dollar brand products with generic pricing, effectively increasing brand discounts. After evaluating the bids through our proprietary system, an evaluation was performed that normalized each proposal against an independent standard to show performance among standard industry classifications consistent across each proposal.

The Results

The results not only showed that three of the bids overstated their value, but measured exactly how the bidder had reclassified portions of the incumbent drug experience to raise the apparent value of brand discounts.

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