Understanding the “bagging” of Patient Medications

TKG PACT Executive Briefings - 3-Minute Market Insights

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When a physician prescribes an expensive specialty medication for a patient, the traditional distribution process was for the provider to purchase the medication, administer it to the patient, and then bill the insurance company for the drug. This “buy-and-bill” process has been utilized for many years.

In recent years, and to help control costs, third-party payers have mandated that the medications come from their own pharmacies where they have more control over the acquisition price of the drugs. This is especially prevalent for expensive, specialty pharmaceuticals.

Various alternatives of this approach have been referred to as “bagging”. In this episode, we define the different types of "bagging" that you may be hearing about.
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