What is the primary function of a Pharmacy Benefits Manager (PBM)?

The primary function of a Pharmacy Benefits Manager (PBM) is to act as an intermediary between pharmacies and payers, such as insurance companies. PBMs play a crucial role in managing prescription drug benefits on behalf of health plans, employers, and government programs. They negotiate prices and discounts with drug manufacturers, establish formulary lists, and process pharmacy claims, ensuring that patients receive medications at reduced costs while still managing overall prescription drug spending.

In addition to negotiating with pharmacies and payers, PBMs help streamline the distribution of medications and improve adherence to medication therapy, contributing to better health outcomes for patients. This intermediary role is essential in balancing the interests of various stakeholders in the healthcare system, including insurers, pharmacies, manufacturers, and patients.

The other options describe functions that are not central to the PBM's role. For instance, while PBMs negotiate prices, they do not directly regulate drug prices; that responsibility falls to government agencies or market forces. Similarly, PBMs do not manufacture medications or directly distribute pharmaceuticals; instead, they collaborate with manufacturers and distributors to manage benefits efficiently.