Pharmacy Benefit Manager (PBM) Market in the US 2015-2019

What is a pharmacy benefit manager?

A pharmacy benefit manager (PBM) is a third party administrator of prescription drug programs in the US. They can be privately funded or an integral part of a healthcare company and government health programs. PBMs are primarily responsible for the development of formularies, discounts with drug manufacturers, and pharmacy contracts, and play a significant role in the processing the payment of prescription drug claims. Their principal function is to maintain the exceeding pharmaceutical expenditures and provide improved and effective health benefits to end-users.

Market outlook of the PBM market

Technavio’s market research analyst predicts the PBM market in the US to grow at a rate of 7% during the forecast period. The increase in healthcare expenditure has propelled the demand for PBM services in the US. The US national healthcare expenditure is expected to reach USD 4 trillion by 2019. Also, about 14.4% of the US population is above 65 years of age. The healthcare expenses are especially high for senior citizens as they tend to buy pharmacy benefit plans as a precautionary measure. This, in turn, has boosted the growth of the PBM market.

Competitive landscape and key vendors