Independent PBM Rx Preferred tells committee transparency can cut drug costs; lawmakers ask how it works

Rx Preferred Benefits representatives briefed the Tennessee House Insurance Committee on Wednesday on how a transparent, independent pharmacy benefit manager (PBM) model works and said it can reduce prescription costs for employers and members.

Philip Dodd, vice president of legal and regulatory for Rx Preferred Benefits, and Zach Hansen, senior director of revenue operations, told the committee their firm operates as a “fully transparent PBM” and charges a flat per‑paid‑claim administrative fee rather than using spread pricing or retaining rebates. They said Rx Preferred does not own pharmacies or operate under insurer ownership, which they described as removing incentives that can raise plan costs.

Why it matters: PBMs administer prescription benefits for employers, state plans and insurers; legislative interest in PBM structure and transparency has grown because of concerns that vertical integration and opaque pricing can increase patient and plan drug costs.

What presenters said

- Rx Preferred said it has been in…