The TeleCLAIM++ system is surprisingly low-cost compared to the original Main Frame system of the 1980s. The licensing cost is less than 1% of the cost of the drugs dispensed. The savings provided, when compared to indemnity insurance methods, may be as great as 33% of the former drug expense for an equivalent Drug Benefit Plan.

The Main Frame systems of the 80s cost multi-millions of dollars using multiple super IBM processors and a development and operating staff of hundreds. Overall, the cost per annum exceeded $30 million dollars. This was well justified by the savings realized by extraordinary cost containment provided by the online capabilities to intercept fraud, abuse and over-utilization. These early transaction costs were estimated to be over $0.30 per Rx or more than 2% per Rx.

For those who can remember, McKesson Robbins created PCS (PBM) of Phoenix and the company set the standards for the PBM industry that are invaluable today. They fathered the creation of NCPDP which remains a unifying force that brought online communication standards enabling the highly effective cost containment of drugs.

DPRx developed their first PBM systems for micro-computers in the late 1980s. Instead of millions of dollars of expense, the original TeleCLAIM system cost less than $15,000 per month doing essentially the identical functions of cost containment performed by the monster Main Frames.

The hardware and the software of TeleCLAIM++ are surprisingly inexpensive because of the economies of the Internet technology. The enormous world-wide popularity of Internet systems in the last decade has created a highly competitive supplier industry. This has driven hardware and software prices to such low levels that the average individual can now afford to host their own website.

The initial costs of installing a TeleCLAIM++ system includes at least two Servers, accessory and peripheral equipment, DSL or Broadband monthly service, and expendables. The out-of-pocket cost should be less than $10,000 one-time and a communication cost of less than $300 per month.

The software licensing expense is comprised of a maintenance/service fee and a variable transaction fee based on volume each month. For an Rx volume of 50,000 per month the aggregate cost would be less than 1% of drug costs. (50,000 Rxs represents over $1 million drug cost or a license expense approximately $10,000.)