Regarding PBM services, what does cash disbursement generally refer to?

Cash disbursement generally refers to payments made for drug purchases. In the context of Pharmacy Benefit Managers (PBMs), cash disbursements are crucial as they encompass the funds transferred to pharmacies for the medications dispensed to beneficiaries. This transaction is a fundamental component of how PBMs manage the financial aspects of drug distribution.

When a pharmacy fills a prescription, it incurs a cost for the medications it supplies. The cash disbursement represents the reimbursement that pharmacies receive from PBMs, which helps them maintain their operations and continues providing medications to patients. This relationship underscores a key role of PBMs in streamlining the payment process between insurers, pharmacies, and drug manufacturers.

Understanding this process is vital for comprehending how PBMs facilitate access to medications while also managing the financial logistics involved in those transactions.