To design an effective Express Scripts audit response strategy, providers must understand the chain of events both prior to the initiation of an ESI audit and afterwards. For example, Special Investigative Units (SIUs) are often the genesis of an Express Scripts audit, and the presence or absence of "audit risk factors" is informative on potentially broader exposure beyond the claims under ESI audit. Any decision to resolve an Express Scripts audit should be informed and result in a full and final settlement of all liability, but ESI audit settlements need to be structured carefully to achieve this goal.

CVS Caremark, OptumRx, and Express Scripts, control at least 80% of the market, making them the three biggest PBMs. Humana also ranks among the largest. In addition, these PBMs regulate access to networks for smaller competitors, such as ESI's partnership with Prime. Plan sponsors, such as United Health, Cigna and Aetna, are vertically integrated with these PBMs, increasing audit risk for pharmacies because network sanctions are more likely to affect a significant aspect of a pharmacy's business across both government and commercial claims.

PBMs like ESI and payors use artificial intelligence and data mining across medical and pharmacy claims to identify areas of potential inquiry. Among other areas, these inquiries typically involve high-reimbursing medicines, brand/generic substitution, inventory discrepancies, co-payment collection, prior authorization, and telehealth relations. Separately, DEA conducts audits and inspections for compliance to controlled substance regulations.  

Common types of ESI audits include desk audits; on-site audits; invoice audits; and prescription audits. Irrespective of the type of Express Scripts audit, all interactions with PBMs like ESI should be taken extremely seriously and can lead to severe consequences if not handled appropriately. For example, there has been a sharp increase in the federal prosecution of pharmacists for audit-related conduct, including answering PBM questions incorrectly. Accordingly, pharmacies should consider using Express Scripts audit counsel to avoid these pitfalls.

Pharmacies can take various steps to prepare to meet ESI audits, including routine self-audits. In fact, the government publishes comprehensive guidance and a checklist to assist pharmacies in their audit planning, including self-audits around prescribing practices, controlled substance management, invoice management, and billing practices. If you need assistance designing or implementing an Express Scripts audit protection plan, please do not hesitate to contact us.

Defending against an Express Scripts audit requires comprehensive knowledge of the rights, responsibilities, and intricacies of pharmacies and their laws and regulations.  If your pharmacy has been identified for an ESI audit, there are a number of potential defenses available to you. The first defense against a Express Scripts audit is to be proactive, and ESI audit planning can lessen the chance of unfavorable findings. That said, it is often necessary to involve an attorney to hold PBMs like ESI to their obligations under law and provider agreements.

Express Scripts audit discrepancies and findings can be appealed based on the specific procedures outlined in the provider manuals. It is important to follow these requirements exactly, within the timeframes established, or your appeal rights could be lost and further review denied. In an ESI appeal, it is critically important to make a complete record of why the Express Scripts audit findings or sanctions should be reversed, including through documentation, legal arguments, and corrective actions, if any. Depending on the outcome of the ESI appeal, you may have further legal recourse against the PBM.

Express Scripts audits can have severe repercussions depending on the results of the ESI audit, including recoupments, network sanctions, and criminal, civil and administrative investigations involving jail time, significant fines, and license revocation or exclusion. We publish a 10-part PBM Audit Guide that discusses the overlap between PBM audits and government investigations and how to successfully manage Express Scripts audit risk. This resource is complimentary to subscribers HERE.