Pharmacy benefit management refers to a system of managing prescription drug benefits on behalf of health insurance plans. PBMs help negotiate prices, develop drug formularies, and administer prescription drug plans. This helps lower costs and provide access to important medicines for health plan members. The need for PBM services has increased as healthcare costs continue to rise globally.
The global Pharmacy Benefit Management Market is estimated to be valued at US$ 858.38 Bn in 2023 and is expected to exhibit a CAGR of 8.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Increasing healthcare costs have boosted demand for pharmacy benefit management services over the past few years. Prescription drug spending in particular has seen significant growth worldwide. PBMs help reduce medication costs through negotiating rebates from drug manufacturers, developing preferred drug lists, and implementing cost controls. They aim to provide quality healthcare services while optimizing costs for health plans and employers. As prescription drug prices continue placing financial burden, demand for PBM services is expected to rise substantially through 2030. This rapid rise is one of the key factors driving growth of the global pharmacy benefit management market during the forecast period.
Strength: Pharmacy benefit management helps reduce drug costs and improves access to medicines for patients. It allows consolidation of purchasing power to negotiate lower drug prices from manufacturers.
Weakness: Complex regulations and compliance issues with frequent changes in healthcare policies pose operational challenges. Lack of transparency in pricing and revenue models raises questions.
Opportunity: Growing geriatric population and rising chronic diseases will increase demand for specialized pharmacy benefit programs. Technology upgrades can enhance customer experience and engagement.
Threats: Political and economic pressures tolower drug prices may threat profitability. Entry of new agile players offering customized solutions can take away market share.
The global pharmacy benefit management market is expected to witness high growth. The global Pharmacy Benefit Management Market is estimated to be valued at US$ 858.38 Bn in 2023 and is expected to exhibit a CAGR of 8.6% over the forecast period 2023 to 2030.
Regional analysis comprises Asian countries are witnessing the fastest growth in the pharmacy benefit management market due to rising healthcare spending and increasing focus on quality of care. China and India dominate the Asian market with presence of local as well as global players.
Key players operating in the pharmacy benefit management market are CVS Health, Optum, SS&C Tecnologies, Inc., Elixir Rx Solutions, LLC, and Centene Corporation (Envolve Health), among others. Pharmacy benefit managers help health insurers and employers to reduce the costs associated with prescription drugs through tools like drug formularies and pharmacy networks. They work on management of prescription drug benefits on behalf of health insurance plans.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it