MailMyPrescriptions.com® is America's first wholesale pharmacy service, headquartered in Boca Raton, Florida. It is a wholly owned subsidiary of Millennial Benefit Management Corporation. The Company was founded in 2016 by Santo Leo. It bills itself as the most affordable cash-pay pharmacy in the United States. Our mission is to reduce the cost of prescription drugs for the uninsured and under-insured. Thanks to our strategic relationships with their wholesalers we are able to offer their prescription drugs at wholesale acquisition cost, instead of using industry standard list price derived discount pricing. Thus making us the first wholesale pharmacy in the Country.
The idea of a wholesale pharmacy service was first conceived by our founder, Santo Leo, in 2015 while working at an advertising agency which had several large healthcare clients. Over time he realized that in particular, the pharmacy industry was ripe for change and that an “Amazon of Pharmacy” was not only a viable notion but if successful it could have a historically disruptive impact on the healthcare industry, which is 20% of the United States GDP. By the summer of 2015, he began personally funding the research and development of the business model. Once he verified that legally, a pharmacy could, in fact, sell prescription drugs without deriving the price from the manufacturer’s published list price, he registered the “MailMyPrescriptions.com” domain for $7 on GoDaddy. He took such a compelling domain name for such a cheap price as a “sign”. He realized this was the Uber to taxi’s, the Airbnb to hotel’s, and the Amazon to retailers. By 2016, he had formally formed the Company and began to raise seed capital in order to prove out its business model. The concept had the potential to save American's billions of dollars on their prescription drugs.
The Company raised $1.6 million dollars in investment capital in order to begin construction on a 25,000 sq. ft. state-of-the-art pharmacy, capable of safely dispensing millions of prescriptions annually. The facility replaced the old Gallery Center in Boca Raton, FL, which is strategically located in the same business park as the United States Postal Service Woodland Station distribution hub. This has allowed for MailMyPrescriptions.com® to get shipments into the mail stream faster. The facility received its pharmacy license from the Florida Board of Pharmacy by the end of the year.
The Company raised an undisclosed sum of financing and dispensed America's first “wholesale priced” prescription from its wholly-owned pharmacy, and under the leadership of Santo Leo, grew by over 1,400% by the end of the year. After completing a Series A raise, and battling through the infamous "trough of sorrow", the Company found strategic investors and dropped it's "subscription" model. The Company then began direct marketing to consumers on television in Q4.
In Q1 the Company will be launching its national marketing campaign on television. In Q2 the Company will announce it's drone delivery initiative.
Transparent Prescription Drug Pricing
MailMyPrescriptions.com® allows consumers to shop the "actual" wholesale acquisition cost of prescription drugs. They have developed a complex algorithm that shops their licensed wholesalers, per Generic Identifier Code ("GPI"), in order to find which licensed wholesaler is offering which FDA-approved prescription drug at the lowest price per unit at any given time. They then provide those prices to our customers in realtime, and allow them to purchase the drug at that price, even if MailMyPrescriptions.com® does not have it in stock. MailMyPrescriptions.com® then fetches a prescription on behalf of the Customer either from their existing pharmacy or doctor and then acquires the prescription drug from their wholesalers in order to dispense it for the MailMyPrescriptions.com® customer. Thus creating the first "transparent buying experience" for a pharmacy customer in America.
Generic prescription drugs typically have list prices issued by their manufacturers. These "benchmarks" are unregulated. They go by many names including Average Wholesale Price ("AWP"), Average Sale Price ("ASP"), Direct Price ("DP"), Wholesale Acquisition Cost ("WAC"). Health insurance carriers use these benchmarks to create their own "formulary" with reimbursement tiers. The reimbursement is based on a typical "Maximum Allowable Cost" ("MAC") or an "Average Sale Price" ("ASP"). The MAC and/or ASP is based on the list price. It is negotiated by a Pharmacy Benefit Manager (the "PBM"), on behalf of the health insurance carrier. When a consumer with health insurance goes to a retail pharmacy they are billed a copay, coinsurance, or a deductible for that prescription drug, if it is covered by their insurance. The idea is the consumer shares the cost of the drug in order to discourage unnecessary usage of the insurance. The remaining difference between the co-payment and the MAC/ASP is billed to the PBM by the pharmacy, who then bills the insurance carrier, and reimburses the pharmacy.If the consumer's health insurance does not cover the prescription drug (it is off formulary) or the consumer does not have health insurance, or not enough health insurance, they typically have to pay the full list price of the prescription drug. Based on wholesale pricing available on MailMyPrescriptions.com® compared to list prices on GoodRx.com, the list prices are often times marked up by several thousand percent from their actual wholesale acquisition cost. The list prices vary by chain, and even store to store within a chain.
Cash Pay Only Service
MailMyPrescriptions.com® does not accept any form of health insurance or "discount cards". It collects payment by accepting major credit card, debit cards, Flexible Spending Accounts "FSA", and Health Savings Accounts "HSA". MailMyPrescriptions.com® is able to offer it's wholesale prescription drug pricing because it takes advantage of the markets price controls. Over 76% of the retail pharmacy's in the United States are controlled by Walgreens Boots Alliance, Rite-Aid, and CVS/Caremark. Three PBM's, including CVS/Caremark, control most of the retail prescription drug reimbursements in the United States. These three PBM's also own and operate the largest mail-order pharmacy's in the country. Collectively, this means that almost all prescriptions drugs are dispensed and billed to the health insurance carrier by the same entity that negotiates the "best price" for that prescription drug to be paid for by that same health insurance carrier. This means that less than 25% of prescriptions in the United States are filled by "Independent Pharmacies" whom get reimbursed by their very competitors. If a retail pharmacy deviates from the formulary pricing, then they will be penalized on all historical claims that they did not deviate from. Their reimbursement contract calls this "Usual & Customary Billing". The Independent Pharmacy cannot discount it's priced for one customer, without risking a clawback by the PBM on all past claims that were more expensive. Furthermore, the Usual & Customary rules ensures that "discount cards" cannot cut into the pricing scheme too great, else they would reduce the big pharmacy's own Usual and Customary pricing. This is partly why BlinkHealth was rapidly kicked out of network by most major pharmacy chains. Because MailMyPrescriptions.com® does not accept health insurance plans and is able to profitably dispense prescription drugs in mass, it is able to break the prescription drug pricing status quo.
Drone Delivery Service
The Company is currently exploring delivering prescription drugs via sidewalk drone by the end of 2018.