The Value of Pharmacy Benefit Management

PBMs Create $145 Billion in Value Annually

Groundbreaking research by University of Chicago Economics Professor Casey Mulligan describes the services that pharmacy benefit managers (PBMs) provide in the healthcare marketplace to patients, health plans, insurers, state, and federal governments, and even drug manufacturers. The paper, for the first time, estimates the dollar value of these services.


$145 B

PBMs Create $145 Billion in Value Annually
The value of PBM services to society is estimated at $145 billion annually.
(Source: The Value of Pharmacy Benefit Management)


Employers and Other Payers Would Forgo $58 Billion in Value Each Year without PBMs
If payers had to act as their own benefit managers, without PBMs performing these valuable services, 40% ($58 billion) of the $145 billion in value would be lost.

PBMs Create a 7:1 Return on Investment

For every $22 billion of resources used by PBMs, they return $168 billion to the system, a 7:1 return on investment (ROI) for the healthcare system.

PBMs Generate Over $148 Billion in Savings Each Year

As a part of the value created, PBMs generate at least $148 billion in savings for the health care system annually. These savings come from PBM-negotiated rebates and discounts combined with lower expenditures on other health care services from increased drug utilization.