PBMs and Pharmacies

How Do Pharmacy Networks Work?

PBMs build networks of pharmacies to provide consumers convenient access to prescriptions at discounted rates. PBMs also monitor prescription safety across all of the network pharmacies, alerting pharmacists to potential drug interactions, even if a consumer uses multiple pharmacies. Network pharmacies compete on service, convenience, and quality to attract consumers within a particular plan. It is important for pharmacies to compete in order to be included in these pharmacy networks. This competition helps keep the rising costs of prescription drugs down.

Mail-Service Pharmacy

Mail-Service Pharmacies provide a convenient, reliable and affordable option for patients to safely access prescription drugs.

Specialty
Pharmacies

Payer-aligned specialty pharmacies have the technology and clinical experience to enhance the safety of patients receiving specialty medications.

Learn About Direct and Indirect Renumeration

What is a PSAO?

The Myth of the “Go It Alone” Independent Pharmacy

Most people believe that independent community pharmacies are individual “mom and pop” proprietorships standing alone in the face of drug manufacturers, pharmacy benefit managers (PBMs), and health plans. But the reality is most independent community pharmacies are part of little-known collective bargaining groups called pharmacy services administrative organizations (PSAOs), which leverage their membership (i.e., the pharmacies they contract with) to negotiate contracts with other parties in the pharmaceutical supply and payment chain. 

Percentage of Independent Pharmacies using PSAOs, by State