PBM Contract Clarity 360° Full Edition

Hamilton County × Anthem

Forensic analysis revealing $8.6M in hidden costs and critical contract vulnerabilities across 4,800+ covered lives

Hamilton County, Indiana
Anthem Blue Cross Blue Shield
4,847 Covered Lives
2025 Plan Year Analysis

Total Exposure

$0.0M

Annual hidden costs identified

Savings Potential

$0.0M

Projected first-year recovery

Contract Gaps

0

Critical vulnerabilities found

Action Items

0

Immediate recommendations

Report Sections
Navigate analysis
Executive Summary
Forensic findings for Hamilton County fiduciaries

This forensic analysis of Hamilton County's Anthem PBM contract for the 2025 plan year reveals $8.6M in annual hidden costs across 4,847 covered lives. Our investigation identified 23 critical contract vulnerabilities exposing the County to systematic overcharges in specialty drug pricing, rebate retention, and generic dispensing inefficiencies. The absence of Maximum Acquisition Cost (MAC) transparency and restrictive audit rights prevent fiduciaries from fulfilling their ERISA duty to verify fair market pricing.

Critical Findings:

Specialty Drug Pricing Opacity

$3.8M Annual Exposure

Anthem contract lacks Maximum Acquisition Cost (MAC) transparency for specialty medications, enabling up to 24% markup above AWP

Rebate Pass-Through Gap

$2.1M Annual Cost

Missing contractual language guaranteeing 100% manufacturer rebate pass-through with quarterly reconciliation

Generic Dispensing Rate Deficiency

$1.4M Annual Cost

74.2% GDR vs. public sector benchmark of 88-92%, indicating potential brand-name steering practices

Audit Rights Limitations

$890K Unverifiable Costs

Restrictive audit scope excludes specialty drug pricing, rebate reconciliation, and network steerage analysis

Administrative Fee Duplication

$425K Annual Cost

Multiple overlapping administrative fees (per-claim, PEPM, specialty) without clear service differentiation

Fiduciary Action Required

We recommend immediate contract amendment negotiations with Anthem focusing on specialty drug MAC transparency, 100% rebate pass-through guarantees, and expanded forensic audit rights. Projected 14-18 month ROI with $6.4M first-year recovery potential.

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