Rx Save Card, an innovative pharmacy benefit solution that allows employers and their employees to integrate an array of cost containment strategies into one integrated navigation and payment experience, announced the successful completion of their $1.7M seed funding round led by Distributed Ventures and participation from industry insiders.
Prescription drugs are currently a $600 billion market and are projected to grow rapidly over the next few years. GLP-1s and other high-cost drugs will continue to put pressure on the affordability of prescription drugs and employer-sponsored prescription drug benefits. Even though 165 million Americans currently receive pharmacy insurance from their employers, they often need to choose between using a traditional pharmacy benefit management (PBM) solution, which limits choice on pharmacies and drugs covered, or paying out-of-pocket using discount cards and alternative pharmacies.
Rx Save Card seeks to bridge that gap by providing employees with a solution to find the best cost for their prescriptions, and helping employers alleviate the out-of-pocket payments for their employees. The Rx Save Card also addresses the central issues raised in recent class-action ERISA fiduciary lawsuits for employers that self-fund their pharmacy benefits program.
“I’m excited to partner with Distributed Ventures and its industry partners as we work on creating a win-win solution that saves money for both employers and employees when it comes to prescription drug spend,” said Chris Crawford, co-founder and CEO and a 20-year veteran of the employer benefits space, including the last 6 years in pharmacy benefits specifically.
He went on to explain how the solution works: “The employer funds the card with a preset amount per month and the employee can go to any of over 65,000 participating pharmacies, including mail order solutions like Mark Cuban Cost Plus Drug Company, to fill their prescription. The lowest price is then paid by for the card, resulting in material savings for employers as plan sponsors and employees as consumers.”
Distributed Ventures, known for its investments in the employer solutions and insurance technology, has long viewed drug spend in the employer benefits sphere as an opportunity for transformational innovation.
“The Rx Save Card team is addressing the significant void between employer sponsored strategies and out-of-pocket solutions,” said Shawn Ellis, Managing Partner of Distributed Ventures. “This is timely with recent increased scrutiny from legislative, regulatory and legal entities related to the lack of consumer choice in the prescription drug market. We’re confident that Chris and team will help employers rest easy knowing they’re fulfilling their fiduciary responsibilities to their employees with a comprehensive, easy to navigate solution that delivers material savings.”
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