Nine out of Ten Employers Think Their PBM is Transparent, 88 Percent Satisfied with PBMs’ Ability to Lower Rx Costs

(Washington, D.C.) — PCMA today released the results of a new survey of nearly 700 employers across the country examining the experiences and perceptions of employers working with pharmacy benefit managers (PBMs) on prescription drug coverage for their employees. The survey was commissioned by PCMA and conducted by nonpartisan, objective research organization NORC at the University of Chicago.

“The findings from the survey conducted by NORC underscore what past employer surveys have found: Employers are overwhelmingly satisfied with their PBMs, including with the transparency, savings, and flexibilities offered,” said JC Scott, president and CEO, PCMA. “No employer or other health plan sponsor is forced to hire a PBM, but a vast majority choose to because of the flexibility and range of options PBMs provide. They feel confident in working with their PBM when designing quality, affordable prescription drug benefits that work for the unique needs of their organizations, and the employees and families that rely on them for prescription drug coverage.

“These survey results should make clear to Congress that policies pushed by self-serving pharma interests would not only weaken the ability of PBMs to continue providing the services that employers clearly value, but they would also take away the choice and flexibility that employers say they want in choosing and contracting with the PBM that best serves their needs. The fact is these misguided policies targeting PBMs would be disastrous for employers, jeopardizing more than $1,000 per person in annual savings.”

See the full survey results: Employers’ Experiences with Managing Prescription Drug Benefits

The survey conducted by NORC captures responses from 691 employer benefit decision-makers nationwide. Key findings from the survey include:

Employers Are Overwhelmingly Satisfied with Their PBMs: Employers expressed high satisfaction with PBMs across key performance areas

1. Contract Clarity: 90 percent of respondents expressed satisfaction with their PBMs’ clarity and transparency of contract terms.
2. Cost-Effectiveness: 88 percent of respondents expressed satisfaction with their PBMs’ ability to provide the lowest costs for employees at the pharmacy counter.
3. Negotiation and Savings: 86 percent of respondents expressed satisfaction with their PBMs’ ability to negotiate discounts from drug manufacturers and generate savings for their organization.
4. Risk Management: 87 percent of respondents expressed satisfaction with their PBMs’ ability to manage risk and accurately predict their organization’s prescription drug benefit costs.

Employers Value the Flexibility to Design Their Own Coverage: Employers are highly confident in their ability to select drug benefits, prioritizing employee costs and access

1. Decision-Making Confidence: 96 percent of respondents feel confident in their organization’s ability to make decisions regarding prescription drug benefits correctly.
2. Prioritizing Employee Costs: 91 percent of respondents stated that when choosing a PBM, the PBM’s ability to provide the lowest costs for employees at the pharmacy counter is an important factor in their organization’s decision-making process.
3. Pharmacy Network Accessibility: 90 percent of respondents stated that when choosing a PBM, a wide network of easily accessible pharmacies for employees is an important factor in their organization’s decision-making process.
4. Formulary Options: 87 percent of respondents stated that when their organization considers partnering with a PBM, access to a wide variety of formulary options, including a diverse selection of drugs at different price points, is an important plan design feature in their organization’s decision-making process.

PBM-Secured Rebates Are Used to the Benefit of Employees: Many employers use rebates to lower employees’ costs 

90 percent of employers who received rebates in the past 12 months used them to offset overall prescription drug benefit costs. Among those employers, 45 percent directed rebates towards at least one activity specifically aimed at reducing out-of-pocket costs for their employees; examples include:

1. Lowering employee health insurance premium contributions
2. Reducing prescription drug copayments
3. Decreasing coinsurance rates for prescription drugs

Learn more about how PBMs work for employers 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 275 million patients.