A World Without Pharmacy Benefit Companies...
…Means Employers Would Have to Go it Alone
Pharmacy benefit companies play an important and unique role in the drug supply and payment chain. While they are best known for lowering drug costs through negotiating rebates from drug companies, they provide many more services across the drug supply chain. Employers, labor unions, health plans, government agencies, drug companies, pharmacies, and most importantly patients all benefit from pharmacy benefit company services.
Pharmacy benefit companies provide critical services that make drugs affordable for patients, saving $148 billion each year.
If employers and other organizations were forced to act as their own pharmacy benefit company, they would lose out on
40% of the total value of the services provided by PBMs, costing them $58 billion each year.
Under this scenario, drug companies would benefit and keep part of the savings that should go to employers and patients.
Source: Casey Mulligan. 2022. The Value of Pharmacy Benefit Management.
Note: For a brief explanation of these services, see PBMs Create $145 Billion in Value Annually, a 7:1 ROI for the Health Care System.