Employers in today’s health care market are faced with the difficult challenge of balancing access to innovative, life-saving, and preventative medicines for consumers, while keeping costs at a sustainable level.
Over the last 20 years, as these new treatments entered the market, creating a cost and access dilemma, those providing coverage – employers, unions, and government programs – realized the value in hiring pharmacy benefit managers (PBMs) to meet the health needs of their respective enrollees.
PBMs reduce prescription drug costs by promoting generics, and negotiating with drug manufacturers for rebates and discounts to reduce the net cost of the drug, creating lower-cost pharmacy options. This model has lowered drug costs for employers in the commercial market and is the foundation for the popular and successful Medicare prescription drug benefit.
Recommended For You
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
