2017 Pharmacy Benefit Changes

Information for Producers, Express Scripts and Blue Cross staff

In 2017, Blue Cross and Blue Shield of Louisiana will implement a closed formulary for non-grandfathered, individual and small group plans and make annual formulary updates to drug coverage for all other members. The Blue Cross Pharmacy and Therapeutics (P&T) Committee, a group of independent Louisiana doctors and pharmacists, has approved these formulary changes. Please read the following information about how these changes affect our members.

How we are letting our members know:
We will mail letters about the new closed formulary and letters about annual formulary updates to the appropriate group leaders and members by Nov. 1, 2016. Links to sample letters are included below.

Changes to Drug Coverage for Fully Insured Members in 2017

When do these changes take effect?
Beginning Jan. 1, 2017, these changes take effect for new sales and upon renewal for existing plans.

Affected Members: Non-grandfathered individuals and small groups (2- 50 employees)

  • Today, our formulary is open for all members. This means we cover all contract-eligible prescription drugs at different cost share levels. Starting Jan. 1, 2017, drug lists for non-grandfathered individuals and small groups (2- 50 employees) will be closed. This means we will not cover every drug, only those on the list.

If an individual or small group member fills a drug that is not on the covered drug list:

  • If members fill a drug that is not on the covered drug list, they could have to pay the full cost of the drug out of pocket.
  • For the first 90 days after their renewal or effective date, members may get a one-time transition fill of a non-formulary drug up to a 30-day supply. Then he or she will get a letter from Express Scripts explaining that the drug will not be covered next time. The member’s doctor will receive a similar letter.

If a member cannot take any of the covered drugs:
Doctors may request coverage of a non-formulary drug if there is a medically necessary need for a drug that is not on the covered drug list. Certain criteria must be met before the drug may be covered. If those criteria are not met, the member will have to fill a covered alternative or pay full price for a drug not on the list.

Sample communications about closed formulary:

When can you see the new Covered Drug List?

Affected Members: Non-grandfathered individuals

  • For individual benefit plans only, 4-Tier pharmacy benefit plans are moving to a new 3-Tier pharmacy benefit design. See the charts below for details.

2017 Individual Benefit Plan Structure

Tier

Description

Copay Option #1

Copay Option #2

1

Primarily generic drugs (traditional and specialty), although some brand-name drugs may fall into this category

$7

$15

2

Includes traditional brands and generics, specialty brands and generics, and biosimilars

20%
($250 cap)

20%
($250 cap)

3

Includes traditional and specialty brands and generics, biosimilars and covered compound drugs

30%
($250 cap)

30%
($250 cap)

2016 Individual Benefit Plan Structure (for your reference)

Tier

Description

Copay Option #1

Copay Option #2

1

Value drugs

$7

$15

2

Preferred brand drugs

$30

$40

3

Non-preferred brand or generic drugs

$70

$70

4

Specialty drugs

10%
($150 cap)

10%
($150 cap)

Affected Members: All grandfathered individual and group members and non-grandfathered large groups (51+)

Sample communications about annual formulary update:

When can you see the updated open formulary?

  • Updated open formulary drug lists will be available online by Dec. 16, 2016.

Affected Members: All fully insured members

Producers will be given these documents to help them speak to their fully insured clients about why we are making these changes. Some may have gotten them at the recent Sales Caravans.

Changes to Drug Coverage for Self-Funded Members in 2017

When do these changes take effect?
These changes take effect on Jan. 1, 2017.

Affected Members: All members with Express Scripts* administered pharmacy benefits through Blue Cross or HMO Louisiana.

Sample communications about annual formulary updates:

Affected Members: All members with Express Scripts administered pharmacy benefits through Blue Cross or HMO Louisiana.

  • Medical marijuana is excluded from coverage today for all benefit plans. A clarifying exclusion will be added to 2017 contracts.

Affected Members: All members with Express Scripts administered pharmacy benefits through Blue Cross or HMO Louisiana.

We are pleased to say that the goal of this program has been met. Today, 85 percent of prescriptions filled are generics. The cost-saving function of this program will be continued through our provider partnership programs going forward. For those reasons, we will sunset the First Fill for Free program as of Jan. 1, 2017.

We will notify self-funded groups that have this option about the program’s end before Jan. 1, 2017.

Working with prescribers
To help our customers more effectively manage healthcare costs, Blue Cross and HMO Louisiana are asking physicians to consider prescribing drugs that are covered or have lower copayments when they believe it is appropriate for their patients. We want to make sure members are informed of the changes; and we are encouraging them to discuss their prescription medications with their physicians.

When members need help
Fully insured members may call Express Scripts* Customer Service toll free at the number on their ID card (1-866-781-7533) to get more information about their prescription benefits. More drug coverage information is available at bcbsla.com/pharmacy.

We value your support.
We value your partnership in supporting our members through these changes. Thank you for the guidance you provide.

*Express Scripts is an independent company that serves as the pharmacy benefit manager for Blue Cross and Blue Shield of Louisiana and HMO Louisiana, Inc.

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