Generic Drugs at Cost with ZERO Markup - ScriptCo
In this episode of our podcast, we had the pleasure of speaking with Spencer Smith and Zach Zeller, the founders of Scriptco. They are on a mission to disrupt the traditional healthcare system by offering transparent medication pricing and emphasizing the importance of affordable generics. Join us as we explore their journey, the benefits of Scriptco, and the potential for change in the healthcare industry.
Unveiling the Dark Underbelly of Pharmacy Benefit Managers (PBMs):
Spencer Smith and Zach Zeller discovered a startling truth about pharmacy benefit managers (PBMs) and their impact on consumers and pharmacies. They realized that copays were significantly higher than the actual cost of drugs, leading them to believe there was an opportunity to disrupt the marketplace. With this newfound knowledge, they spun off their three pharmacies and founded Scriptco in September 2019.
Scriptco's Unique Business Model:
Unlike traditional pharmacy services, Scriptco's business model focuses on monetizing the service, not the medication itself. Consumers can become members of Scriptco for $140 a year and quote their medications to see potential savings. On the business-to-business side, Scriptco charges $3 per member per month or $10 per utilizing member per month.
Transparency and Seamless User Experience:
Scriptco aims to provide transparency by disclosing the actual cost of drugs, determined by what they bought it for. They work with one manufacturer and 30 wholesalers, ensuring their inventory updates the quote tool in real time. This means that Scriptco's pricing is reflected in real time for partners utilizing their data, such as EMR companies and other platforms. By handling all fulfillment under one roof, Scriptco ensures a seamless user experience.
The Power of Generics and Cost Savings:
Scriptco differentiates itself from traditional PBMs by focusing solely on the fulfillment side of the pharmacy business. By utilizing Scriptco alongside generic medications, total spend on generics can be reduced by 25% to 30%. This is a significant cost-saving potential, especially considering that generics make up 92% of the market. Many low-cost medications have hidden costs built into their pricing due to PBM contracts, copay requirements, and retail pharmacy margins. Scriptco aims to eliminate these hidden costs and provide affordable options.
The Ethical Obligation and Potential for Change:
Spencer Smith and Zach Zeller feel an ethical obligation to shed light on Scriptco and its cost-saving potential. They believe that more people should be aware of the pricing issues in the healthcare system. With Scriptco, they have already saved one CEO $417 per life per year after all expenses. The potential for significant cost savings and a more transparent healthcare system is within reach.
Conclusion:
In this podcast episode, we explored the challenges and opportunities within the healthcare and pharmacy industry with Spencer Smith and Zach Zeller, the founders of Scriptco. Their mission to disrupt the traditional healthcare system by offering transparent medication pricing and focusing on affordable generics is commendable. Scriptco's unique business model, emphasis on transparency, and seamless user experience set them apart from traditional PBMs. By utilizing Scriptco alongside generic medications, significant cost savings are possible. It's time to bring transparency and affordability to the forefront of the healthcare system, and Scriptco is leading the way.
Remember, your health is your wealth, and with companies like Scriptco, a more affordable and accessible healthcare system is within reach.
So, why not take a step towards a more transparent healthcare system today? Explore Scriptco's offerings and see how you can save on your medications without hidden costs.
Links:
@SelfFunded Channel - https://www.youtube.com/@UC4aPWFnLVkDVYRKHZdW3oMw
ScriptCo Website - https://scriptco.com/
Chapters:
00:00:00 Zach Zeller: From Track Star to Medical Sales
00:05:24 Transitioning into Retail Pharmacy
00:11:25 Scriptco: Transparent Medication Pricing
00:17:09 The Untapped Potential of Generic Medications
00:22:55 Challenges of Robotic Drug Fulfillment
00:28:53 Scriptco: Member Experience
00:34:26 Scriptco: Direct-to-Consumer Pharmacy Model
00:40:24 Challenges in Working with PBMs
00:46:18 The future of healthcare
