Rx Save Card, a pharmacy benefits solution that enables employers and their employees to integrate a range of cost-containment strategies into an integrated navigation and payment experience, announced the successful closing of its $1.7 million seed funding round led by Distributed Ventures with participation from industry insiders.
The prescription drug market is valued at hundreds of billions of dollars and is expected to multiply in the next few years. And GLP-1 and other expensive drugs will continue to put pressure on the affordability of prescription drugs and employer-sponsored benefits.
Although 165 million Americans receive pharmacy insurance through their employer, they often have to choose between using a traditional pharmaceutical benefit management (PBM) solution, limiting their choice of pharmacies and covered drugs, or paying out-of-pocket using discount cards and alternative pharmacies.
The Rx Save Card seeks to fill that gap by providing employees with a solution to find the best price on their prescriptions and helping employers reduce their employees’ co-payments. And the Rx Save Card also addresses the key issues raised in recent ERISA class action lawsuits for employers who self-fund their pharmacy benefit program.
With this round of funding, Rx Save Card will further expand its team and technology.
KEY QUOTES:
“I am excited to be working with Distributed Ventures and its industry partners to develop a win-win solution that saves both employers and employees money on prescription drug expenses.”
“The employer pays a set amount per month into the card and the employee can fill their prescription at any of over 65,000 participating pharmacies, including mail-order pharmacies such as Mark Cuban Cost Plus Drug Company. The lowest price is then paid for the card, resulting in significant savings for employers as plan sponsors and employees as consumers.”
- Chris Crawford, co-founder and CEO and has been in the employer benefits industry for 20 years, the last 6 of which have been specifically in the pharmacy benefits industry
“The Rx Save Card team is addressing the significant gap between employer-sponsored strategies and out-of-pocket solutions, which comes at a time when the lack of consumer choice in the prescription drug market has recently come under increasing scrutiny from legislators, regulators and legal entities. We are confident that Chris and his team will provide employers with the peace of mind that they are meeting their fiduciary duties to their employees with a comprehensive, easy-to-use solution that delivers significant savings.”
- Shawn Ellis, Managing Partner of Distributed Ventures
