The value of white bagging: A safer, cost-effective approach for specialty medications

Although they are used by only 4.3% of the population, specialty medications account for more than half of all drug spending in the U.S.¹ The high costs of these medications, combined with their critical role in treating some of the most debilitating conditions, are why white bagging presents an invaluable opportunity to improve affordability without sacrificing quality of care.

What is white bagging in pharmacy?

White bagging is a process where specialty pharmacies send medications directly to the health care provider for administration to individual patients. This differs from the traditional “buy and bill” method, where providers purchase, store and bill insurers for drugs. Instead, white bagging enables the specialty pharmacy to handle sourcing, storage and delivery. The provider then administers the medication once it arrives. By streamlining the procurement and delivery process, white bagging can help plans manage costs for complex conditions such as cancer, multiple sclerosis and inflammatory conditions. 

Additionally, white bagging allows health plans to leverage specialty pharmacies’ expertise in treating rare conditions. Providers treating rare diseases may only see a limited number of cases, resulting in less frequent hands-on experience with these conditions. In contrast, specialty pharmacies regularly manage a higher volume of patients with these rare conditions, and their clinical teams are specifically trained to handle the complexities of such treatments.

The benefits of white bagging vs brown bagging and “buy and bill”

The primary benefit of white bagging is the significant cost savings it offers. White bagging eliminates the markup added by providers with the “buy and bill” approach. In some cases, these markups can inflate the drug’s cost by 200-300%.² Specialty pharmacies, leveraging their purchasing power and relationships with drug manufacturers, negotiate better pricing for these high-cost medications and directly bill the health plan or insurer, removing costly intermediaries.

White bagging ensures that patient-specific medications are delivered precisely when they’re needed, improving medication management and minimizing waste. Many specialty drugs require strict storage conditions, such as end-to-end temperature control. White bagging ensures these requirements are met by specialty pharmacies that can handle the logistics, minimizing the risk of improper storage and medication errors, ultimately leading to better patient outcomes. 

For patients, this process offers access to high-quality care without the need to coordinate logistics themselves. Everything happens behind the scenes, allowing patients to focus on their treatment without added stress about managing medication delivery.

Navigating the logistics of white bagging

Although white bagging offers many advantages, it does present certain logistics that require careful attention:

• Treatment coordination: Medications must be delivered on time for scheduled treatments to avoid disruptions in care. A specialty pharmacy  with access to a well-managed supply chain can mitigate this risk, ensuring timely medication delivery.
• Provider concerns: Some providers may have reservations about losing control over which specialty pharmacies they work with, since they’re no longer in charge of directly purchasing and managing inventory. However, the streamlined processes can reduce administrative burdens, allowing providers to focus on patient care. Recent advancements, such as Verity Solutions’ acquisition of Mainbridge Health Partners’ proprietary software, Fusebox, will assist providers and health systems with managing drug purchasing, inventory management and patient advocacy services. In addition, Accredo’s provider portal, MyAccredoPatients.com, allows prescribers and delegates to efficiently communicate with Accredo in a user-friendly way, relieving administrative concerns and improving communication between providers and the Accredo Pharmacy.
• Risk of wasted medication: Changes in treatment plans or delayed appointments after medication shipment can lead to waste. Effective logistical planning and flexibility from the specialty pharmacy is key to minimizing that risk.

A balanced approach to white bagging

White bagging offers a practical solution for health plans aiming to reduce drug costs without sacrificing quality of care. The process benefits both health plans and patients by focusing on reducing waste, improving medication management and enhancing patient safety.

Accredo’s experience in managing specialty medications through white bagging makes it a trusted partner for payers. Our logistical capabilities and expertise in handling complex specialty drugs ensure that medications are safely stored and delivered on time, reducing delays and errors.

Additionally, Accredo’s Medical Channel Management (MCM) solutions help payers manage their medical spend by redirecting clinically appropriate drugs from the medical benefit to the pharmacy benefit. With MCM and Accredo Convenient Care (ACC), Accredo nursing is available for patients, allowing them to receive certain therapies at home. Patients and providers can also choose to have the medication shipped directly to the administration site. This shift not only saves payers by moving care from expensive hospital outpatient settings but also provides patients with a more comfortable, convenient place to receive their treatment.

White bagging, when effectively implemented, offers payers an opportunity to reduce specialty medication costs while maintaining high-quality care and patient safety. By working with a well-equipped specialty pharmacy partner like Accredo, payers can optimize the delivery of specialty medications, improve patient outcomes and create a more efficient health care system.