November 21, 2016
An analysis from Visante quantifying how PBMs generate $6 in savings for each $1 spent on their services.
- Pharmacy benefit managers (PBMs) will help reduce prescription drug costs for more than 266 million Americans in 2017.
- PBMs save payers and patients 40-50% on their annual prescription drug and related medical costs compared to what they would have spent without PBMs.
- PBMs save payers and patients an average of $941 per person per year.
- For every $1 spent on their services, PBMs reduce costs by $6.
- PBMs account for just 4% of the net cost of a brand name prescription, while manufacturers account for 88%.
- Over the next 10 years, PBMs will help prevent 1 billion medication errors.
- Through specialty pharmacy services, PBMs will help extend and improve the quality of life for patients with multiple sclerosis and rheumatoid arthritis by approximately 1 million quality-adjusted life years (QALYs) over 10 years.
- PBMs improve drug therapy and patient adherence in diabetes patients, helping to prevent some 480,000 heart failures; 230,000 incidents of kidney disease; 180,000 strokes; and 8,000 amputations annually.