Pharmacy Benefit Management, or PBM entails an organization’s provision of services, aid and educational programs to patients. PBM also influences and affects patterns of pharmacists and doctors so that appropriate drugs with maximized effectiveness are prescribed to patients.
Effectively, PBMs serve as intermediaries between the healthcare industry and insurers alike. Owing to the large sizes of PBMs, they stand in a position to negotiate sizable customer contracts. To wit, they get the best rates from both pharmaceutical companies as well as pharmacies.
For members in the pharmaceutical profession, it is important to determine which PBN is a dominant force in the market. Some large companies have more leverage than others in negotiation of reimbursement rates for both medication and patient care services.