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The Government Accountability Office (GAO) recently published a thorough overview of PSAOs, how they work, and the role they play in the U.S. Pharmacy Services Administrative Organizations contracted with as few as 24 and as many as 5,000 pharmacies, mostly independent pharmacies. Most PSAOs represented or provided other services to fewer than 1,000 pharmacies, clustered in a geographic area. The most common services PSAOs provided were negotiation with health insurance plans or pharmacy benefit managers (PBM), communications, and help-desk services.
Almost all of the fees paid for PSAO services are paid by member pharmacies, with PSAOs receiving no administrative fees from other entities such as third-party payers with prescription drug coverage and reimbursement. Spending on prescription drugs is expected to decrease in coming years, mostly because expiring drug patents will allow consumers to choose cheaper generic drugs. The Express Scripts 2012 Drug Trend Report is another good resource for those interested in the U.S.
An expert on Medicaid, Medicare, and health reform, Kip Piper, MA, FACHE, is a consultant, speaker, and author.
About thePiper Report The Piper Report is Kip Piper’s health care blog on business and policy issues in Medicaid, Medicare, and the Affordable Care Act, with articles, interviews, resources, primers, book reviews, and more.

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Kip Piper advises health plans, hospitals and health systems, states, and pharma, biotech, medical device, HIT, and investment firms. We are constantly adding new documents and features to address user requests and the evolving business landscape.
Our Business-in-a-Box software gives you unlimited lifetime access to our entire collection of 1,800 business and legal document templates. But small pharmacies often do not have the resources to handle the administrative burden of filing claims with health plans or purchasing stock from prescription drug wholesalers. It found that, for the first time in two decades, spending among those with prescription drug benefits fell 1.5 percent for traditional prescription drugs, which includes medicines for high cholesterol and high blood pressure.
With 30 years’ experience, Kip is a senior consultant with Sellers Dorsey, top specialists in Medicaid and health reform. Instead, they contract with a Pharmacy Services Administrative Organization (PSAO) to manage those functions.

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