What is Whitebagging?
Efficiency or added administrative burden?
White bagging is a pharmacy distribution model where insurers require patients to obtain provider-administered medications from a designated specialty pharmacy, which then ships the drugs to the infusion center for administration. While this may appear cost-effective on the surface, it often results in hidden expenses for employers and payers. A recent Avalere Health study found that white bagging leads to significant drug waste and insider self-payments to insurance company owned specialty pharmacies.
Infusion centers incur unreimbursed administrative costs for handling and disposing of these drugs. These inefficiencies undermine the anticipated savings and can ultimately increase the total cost of care for employers.
When white bagging is mandated, infusion centers lose control over drug sourcing and delivery making it harder to maintain quality care and timely treatment. Moreover, patients may face delays and increased out-of-pocket costs due to insurance restrictions and logistical challenges.
For these reasons, many infusion centers and hospitals advocate against white bagging and support legislation that protects provider autonomy and ensures equitable reimbursement. Pace will allow whitebagging in certain situations but patients may incur additional administrative fees not covered by insurance.
