What is the purpose of calculating the Cost of PBM Services?

Calculating the Cost of PBM (Pharmacy Benefit Manager) Services is essential for understanding the financial implications for purchasers, including employers and health plans. This calculation helps to elucidate the actual expenditures associated with the services that PBMs provide, such as managing prescription drug benefits, negotiating prices with manufacturers, and implementing formularies. By having a clear picture of these costs, purchasers can make informed decisions about their pharmacy benefit arrangements and evaluate the overall value they receive from a PBM.

Establishing these costs is critical for budgeting, negotiating contracts, and ensuring that organizations get the best possible return on their investment in pharmacy services. This financial insight aids in understanding trends in medication spending and assists in strategic planning for future healthcare expenditures.

In contrast, while understanding approval rates for drugs, assessing clinical outcomes, and comparing the efficacy of generics to brands are important aspects of pharmacy management, they do not directly relate to the primary purpose of calculating the cost of PBM services. The latter focuses specifically on the economic factors that influence the financial relationship between PBMs and their clients.