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Catamaran CEO Mark Thierer talks about the company’s deal with Target and how it helps other companies manage their prescription drug spending.
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-- haven't heard of catamaran you're missing quite a bit not just because its five -- stock chart is pretty much a straight upward lying through the past five crazy years.
Not just because today -- stock jumped another 8% on earnings news and not just because it was the fastest growing company 2000 let it.
But this company has also pioneered a process of dealing with health care and pricing.
That is simplified life for all of us mark fear is the chairman and CEO -- catamaran corporation joins us now.
In a Fox Business exclusive mark first of all can -- today wasn't so much the numbers it was the news that in fact you just signed a deal with target.
How much is that gonna mean for the company.
While this deal with target was really huge for us and on a number of levels first and foremost target -- you know.
Is a national employer and a leader and an innovator employee benefits and so for us.
Through our new merged company catamaran we are taking our new business model up market.
And this is a big endorsement for us opening an account like -- Like target is really going to be important for us this next coming year you know before we go any further mark forgive -- for -- -- but maybe we should tell folks exactly what catamaran does go ahead.
Catamaran is a pharmacy benefit manager and so our customers are employers large employers like target or health plans.
Companies that need to manage prescription drug spending so we're in the business to retain urged to take costs out of the system for prescription drugs at the same time.
Provide better health care to their members -- so so bottom line is every time I go to the pharmacy or millions of other Americans do.
And and give the pharmacist might card and he swipes it tells me exactly how much I have to pay out of out of pocket.
The pricing mechanism is so quick because of what you do correct.
Well you've nailed it and in fact.
The PBM industries really the only part of the entire health care system that is online.
And real time and so it's not just the financial -- -- -- of the clinical edits.
It's everything that surrounds that pharmacy claim to make sure you're not gonna have a misadventure either financially or more importantly clinically now they -- the incredible mess up of our of our health care system is pricing that's key number one because you have all these middlemen between.
The provider and -- and the patient.
You what you have done is is limit that space so that the the patient immediately get some answers to how much something cost is this a pricing model a can be used for things other than pharmacies.
Well in fact you're seeing it happen in health care more broadly electronic health records are trying to automate the process of providing care.
In the outpatient setting.
And so in pharmacy our job is really to work with the supply chain the pharmaceutical manufacturers the Biotech manufacturers.
Negotiate pricing on behalf of -- plan sponsors are employers and health plans.
And then push that better pricing back through the member in you're seeing this kind of a model.
Start to -- -- proliferate throughout the rest health care as well.
Now this pub does public health policy specifically Obama care.
Affect your business -- -- -- whether we keep it or.
Revise it is as per somebody who made become president no it next next week.
Well the Affordable Care Act.
Did put in place a mechanism where 25 to maybe thirty million people will be coming into the health system.
In 2014.
Or sometime thereafter so.
We do think that that's very good for our business and obviously the funding mechanisms are going to be through state and federal insurance exchanges and so.
Someone's gonna need to be in the business of helping to contain those costs my own feeling is regardless of who's who becomes president we will have some kind of Health Care Reform.
And these people will receive benefits and and we think -- is well positioned to help them now let's put up that five year chart again if we can vary because I just wanna know that.
That the U spectacular rise and success that you've had in the stock.
Does seem to coincide with the new Medicaid part.
Well actually is not a coincidence in Medicare part.
2006.
And since that time our company catamaran has been a major player behind the scenes providing the infrastructure to help process the prescriptions.
For the Medicare part.
It's now a very successful program.
And our technology is actually touching one out of three Medicare part.
8% -- today a lot of mutual funds are now including the stock.
In their portfolio mark -- spectacular success congratulations CEO of catamaran thanks for coming on appreciate it.
Thanks for having me --
