Pharmacy Benefit Managers

Pharmacy Benefit Managers (PBMs) are companies that administer prescription drug plans for insurance companies, employers, and other organizations. They manage which medications are covered, negotiate prices with drug manufacturers and pharmacies, and develop formularies—lists of approved drugs. PBMs aim to control costs, improve medication access, and ensure safe use. While they play a key role in managing prescription benefits, their complex fee structures and agreements can sometimes lead to transparency concerns about how savings are shared. Overall, PBMs act as intermediaries to help manage the pharmacy benefit system effectively.