Tyson Foods ditches traditional PBM to partner with Rightway.

As part of a major business model overhaul, Tyson Foods rewrote the script on pharmacy benefits, transitioning away from their large, traditional pharmacy benefit manager(PBM) to partner with Rightway. As one of the first Fortune 100 companies to take this bold step, Tyson aimed to cut spending on high-cost drugs and enhance the member pharmacy experience. After rigorous evaluation, Tyson bid farewell to its legacy PBM partner and embraced Rightway’s more personalized, transparent, and cost-effective pharmacy benefits model.

"Our partnership with Tyson is a major milestone in our mission to reshape the pharmacy benefits landscape for America's most forward-thinking employers."

Jordan Feldman, Co-Founder and CEO of Rightway

How Tyson foods took control of its pharmacy benefits.

Evaluation of Existing PBM Relationship.

Tyson Foods assessed its current PBM's performance, identifying significant gaps in cost transparency and data accessibility.

PBM partner selection.

Prioritizing clarity and alignment, Tyson Foods partnered with Rightway for its transparent pricing models and full rebate pass-throughs.

Implementation of personalized employee support.

Recognizing the diverse needs of their workforce, Tyson Foods leveraged Rightway's multilingual support and personalized outreach to ensure employees received tailored assistance in managing their prescriptions.

Realization of cost savings.

Within a year of transitioning, Tyson Foods reported a 13.5% reduction in pharmacy costs, amounting to $17.3 million in savings, while simultaneously improving the overall benefits experience for employees.

This transformation underscores the impact of aligning pharmacy benefits management with organizational values of transparency, efficiency, and employee well-being.

What Tyson Foods' move revealed about the PBM industry.

Facing escalating pharmacy costs, Tyson's move underscores a broader trend challenging the industry’s status quo. The three major PBM players, which control nearly 80% of the total market share, claim to save employers money by negotiating big rebates from drugmakers. However, their lack of transparency raises questions about how much of these savings actually benefit employers and patients. Rightway's approach guarantees transparency by passing all drug rebates and savings back to plan sponsors and using concierge pharmacist support to drive prescriptions to their lowest net cost.

For more details on the partnership, explore the CNBC coverage here.

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