26 Ma r ch 20 08 VIEW on Advertising MARKET RESEARCH I n today’s reimbursement environment, private and govern ment payers are more influential than ever, managing more than 85% of US prescription drug expenditures. Part D of the Medicare Pre scription Drug Improvement and Modernization Act (MMA) — in effect since January 2006 — played a key role in driving unprece dented change in the prescription drug market, giving 45 million Medicare beneficiaries the opportunity to obtain prescription drug coverage. Against this backdrop, it is increasingly important to create strategically segmented message strategies, targeted to decision makers within payer organizations. With managed care representing a significant percentage of Rx sales dollars, it is critical for brand teams to create messages that opti mize market access by driving favorable formulary placements.This, in turn, generates physician and patient brand commitment, since lower copays make products affordable. Access Messaging Dynamics Changes in the pricing and reimbursement landscape — from the rollout of Medicare Part D to the rise of consumerdriven healthcare — make it essential for brand teams to target their access messages, not only to differ ent payer segments but to different decision makers within those segments. Payer segments include: Pharmacy and Medical Directors at Managed Care Organizations (MCOs); Pharmacy Benefit Managers (PBMs); Specialty Phar macy Providers (SPPs); LongTerm Care Facilities; Hospitals; and Employers. Each segment requires unique product messages to maximize market access. Brand managers must understand the dynamics behind formulary decisionmaking, as well as how decision processes differ across payer types — and even within the same organization. For example, a brand may reside on one formulary tier covering Medicare Part D patients — and then, in the same organization, lie on a different tier for nonMedicare patients. Differing decision drivers between PBMs and MCOs offer another example of the importance of understanding different decision processes when developing messages.While PBMs are driven by volume and rebates, MCO Medical Directors are more influenced by clinical outcomes and pharmacoeconomic data. Impacting these different types of organizations requires different types of messages — each tailored to the decision crite ria most important to that segment. Key Questions Brand managers must work closely with managed care researchers to build unique, segmented message platforms early in a product’s prelaunch phase. They must identify which messages are most compelling for driving optimum formulary placement among target segments, including Pharmacy and Medical Directors at PBMs, HMOs, and PPOs. This undertaking must inform the final messages that National Account Executives use in prelaunch promotion. Effective payer message research must answer key questions: . Which messages resonate best and lead to favorable formulary status? . What is the relative importance of message themes, such as burden of illness, unmet needs, cost effectiveness, etc.? . What are the key drivers and barriers to formulary adoption? . What type of restrictions are likely to be imposed and why? Understanding how responses differ across payer groups is key to creat ing effective message strategies. Brand managers who know which messages are important to which segments win favorable formulary placements. Payer Points of Influence The importance of targeting messages to specific payer segments doesn’t end at launch. Once a product is introduced or repositioned, brand teams must continue to develop messages that maintain — and improve — their brand’s competitive position in each payer account.To achieve that goal, they must determine the optimum points of influence. Points of influence are brand attributes that are particularly meaningful within an account. They are the attributes the account considers most important when choosing which brands will receive favorable formulary status, pricing and reimbursement. A brand’s unique value proposition should encompass all related points of influence. Certainly, particular elements of a brand’s clinical, economic and even humanistic profile will appeal to some accounts more than oth ers.These differences present brand teams with opportunities to create dis tinct messages that address each account’s needs. Brand teams who seize these opportunities optimize market access. Conclusions As the reimbursement landscape evolves, the need to develop seg mented payer messages increases. Creating targeted messages for each payer audience is critical to optimizing brand performance. Systematically segmenting payers — and strategically aligning brand messages — drives optimal ROI and longterm success. # TNS Healthcare TNS HEALTHCARE, with operating units in 70 countries, offers globally consistent solutions for optimizing sales and product performance, assessing promotional effectiveness, tracking brands and supporting strategic decisions around the world. Clients can measure, manage, and monitor their businesses across products, categories, countries and time periods. Messaging Payers The Key to Unlocking Market Access Brand leaders must understand the payer channels in which their products compete — and the specific needs of each payer. Larry Olson, Vice President and Practice Leader, Payer Markets 0308 PVV VIEW Proofs 3/19/08 6:19 PM Page 26
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