What is the purpose of a Fiduciary PBM contract?

A Fiduciary PBM (Pharmacy Benefit Manager) contract is designed primarily to ensure full transparency and accountability in managing prescription drug benefits. This means that the PBM operates in the best interest of the client, often a health plan or employer, and is obligated to disclose all relevant information regarding pricing, rebates, and any other financial arrangements to eliminate the potential for overpayments.

In this context, the emphasis on full disclosure helps clients understand the true costs associated with their drug benefits and allows them to assess whether they are receiving fair pricing and rebate arrangements from the PBM. Such transparency is critical in preventing excessive charges and ensuring that clients are not overpaying for medications or services.

Other options, while they may have some relevance to PBM functions, do not encapsulate the fundamental intent of a Fiduciary PBM contract as effectively as the focus on full disclosure. Limiting disclosures, while it can be a practice in certain situations, goes against the fiduciary principle, which is rooted in honesty and transparency. Sharing savings and acting as an insurance provider are also functions but do not specifically highlight the primary goal of maintaining full transparency to prevent overpayments, which is central to the purpose of a Fiduciary PBM contract.