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Developing an effective generic prescription drug program.

John D Jones

    Benefits Quarterly
    |March 1, 2003
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    Understanding pharmacy benefit manager (PBM) pricing strategies empowers employers to manage pharmacy benefits effectively. Knowledge of PBM tactics helps secure affordable, quality prescription drug programs for employees.

    Area of Science:

    • Health Economics
    • Pharmacy Management
    • Employer Benefits

    Background:

    • Pharmacy benefit managers (PBMs) significantly influence prescription drug costs.
    • Employers require a comprehensive understanding of PBM operations to optimize benefits.

    Purpose of the Study:

    • To inform employers about PBM pricing strategies.
    • To guide employers in selecting and managing pharmacy benefit programs.

    Main Methods:

    • Discussion of PBM pricing models.
    • Analysis of employer knowledge gaps.
    • Identification of key employer questions and goals.

    Main Results:

    • PBMs employ diverse pricing strategies.
    • Employer knowledge of these strategies is crucial for cost management.

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  • Strategic questioning and goal-setting are vital for employers.

    • Conclusions:

    • Informed employers can leverage PBM strategies for better pharmacy benefit outcomes.
    • Achieving affordable and quality prescription drug management requires employer engagement.
    • Understanding PBMs is key to employee well-being and cost control.