HealthNovember 20, 2024

For payers, the future requires building a sustainable data alignment strategy

Data alignment between payer benefit teams remains a challenge. Leaders need to build sustainable strategies to best understand improvements for efficiencies and member experiences.

Complex data structures require new strategies

Medical and drug benefits used to be more clean-cut, resulting in siloed teams, coding structures, and benefit designs. The system was built to accommodate clear delineations between prescription medication and medical treatments.

However, over time, drug therapies have rapidly evolved—in both scale and complexity—requiring these models to transform. Specialty drugs in the form of biologics and biosimilars, as well as GPL-1 and semaglutide products, have blurred the lines between medical and drug benefits, especially when products can be self-administered.

Additionally, different coding models and structures have complicated information sharing between teams. Pharmacy benefit teams and their systems operate with National Drug Codes (NDC) and medical benefit teams operate in condition code sets like ICD-10 for diagnoses, HCPCS for non-physician services, and CPT for medical procedures.

Challenges with drug code mapping

Tying to consistently translate between these codes at scale is a challenge. Pharmacy teams need to better understand why a provider is requesting a drug or what medical causes may be triggering a prescription. Data analysts often use crosswalks and the Medi-Span® Generic Product Indicator (GPI) to translate back and forth between medical conditions and code databases and then back into NDC codes. Billing can also be a challenge as the drug units and/or package sizes often have to be translated between the code sets and in alignment with NCPDP standards.

With these siloed data sets and processes, payers and pharmacy benefit managers (PBMs) have challenges seeing their members’ whole health picture, which can lead to inefficiencies, inaccuracies, and—at times—a frustrating customer experience. Members themselves may get caught between medical and pharmacy claims, especially when a drug can be covered by both pharmacy and medical benefits. Drugs with prior authorizations or patient-safety-based quantity edits can also be challenging to resolve. Creating a clear data alignment strategy to connect pharmacy and medical benefit teams—as well as the rest of the organization—will be critical for payers to move forward in a rapidly changing ecosystem.

Key data alignment strategies for payers and PBMs

As teams start aligning data within their organization, it will be important to consider the outcomes on equity, scalability, and flexibility—and to find the right data partner to meet these goals. This can be a challenge, particularly for PBMs, which are designed to process pharmacy claims only and do not often have access to the medical claims data for the payers they support.

Removing data silos to improve equitable outcomes and reduce costs

One of the most challenging strategies to implement will be smoothing out data silos and coding processes. Removing siloes and creating clear, interoperable data transfers is essential to understanding member populations and their medical and drug expenditures more clearly. This allows payer teams to identify opportunities for efficiencies, optimize formularies and policies, and create smoother experiences for payer and PBM teams.

With full pictures of data, health conditions, and prescriptions, teams can better address member populations and target care based on social drivers as well as claims. With the Centers for Medicare & Medicaid Services (CMS) implementing new health equity standards in 2027, more accessible data will be essential to leverage for success. Specifically, aligned data across benefit teams and departments will be key to understanding members as a whole person with complex social, economic, and medical factors. Data will be essential to have a holistic picture of member populations, improve Stars ratings and HEDIS scores, and design and implement earlier, effective interventions and support programs.

Implementing scalable tools and processes

The healthcare industry continues to rapidly change. Medical knowledge doubles every 73 days, the number of drug approvals in 2023 hit an all-time high, and projections anticipate 50-55 new medications and therapies launching each year through 2028.

Changing regulations can toss curveballs into data strategies and require teams to pivot at scale. Recent CMS regulations like the Transparency in Coverage Final Rule and the No Surprises Act can require process adjustments—with a clean data strategy, teams can stay agile and revise approaches.

As these trends accelerate, payers need to be able to scale alongside them. Having the right technology solutions and processes in place to provide the latest information and support coding interoperability, like the Generic Product Indicator, will be necessary to translate claims and prescriptions between teams. Scaling up member engagement and education materials will also require clean data strategies to be able to provide personalized content when claims include ICD-10 codes indicating certain medical cases.

The right data partner is critical for current and future success

Data alignment is crucial for better customer and member experiences, and to improve internal processes of payer and PBM teams. While daunting, the right data partner can help make the transitions smoother and support implementation. With the Medi-Span drug data solutions and aligned clinical information and member engagement from UpToDate® solutions, the team at Wolters Kluwer is ready to support data strategies across your organization for more seamless data exchange and preparation for the future. 

Learn more about data alignment strategies by downloading the whitepaper “Bridging the value gap: Aligning medical and drug benefits for health insurers”, and explore drug data solutions for payers and pharmacy benefit managers.

Complete the form below to download the whitepaper

Head of Product – Payer Clinical Effectiveness, Wolters Kluwer Health
Allison Combs is currently the Head of Product – Payer Clinical Effectiveness at Wolters Kluwer Health, where she is responsible for growing the payer franchise by increasing current product market fit as well as developing new products.
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