PBMs are your single biggest advocate for lower drug costs

University of Chicago Professor of Economics and current Chief Counsel for Advocacy at the Small Business Administration Casey Mulligan developed an economic model to estimate the overall value that PBMs provide to the American health care system. Dr. Mulligan’s research, published in the National Bureau of Economic Research, found that overall, PBMs provide more than $145 billion in value to Americans annually and $148 billion in savings.

In addition, the paper highlights that in a world without PBMs, employers would have to go it alone, performing critical services on their own.

If employers and other plan sponsors were forced to act as their own PBM, 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.

Read the full paper The Value of Pharmacy Benefit Management HERE.

View the infographic on the value that PBMs provide HERE.

Learn more about a world without PBMs HERE.

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PCMA is the national association representing America’s pharmacy benefit companies. Pharmacy benefit companies are working every day to secure savings, enable better health outcomes, and support access to quality prescription drug coverage for more than 289 million patients.