Pharmacy Benefits Manager (PBM)

A Pharmacy Benefits Manager (PBM) is a company that helps manage prescription drug benefits on behalf of health insurers, employers, and other plan sponsors. PBMs negotiate prices with drug manufacturers, manage formularies (lists of covered medications), and process prescriptions. They aim to lower costs, ensure access to medications, and improve health outcomes for patients. By coordinating with pharmacies and handling claims, PBMs play a crucial role in the healthcare system, helping to balance affordability with the availability of necessary medications.