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Pharmacy Benefit Management Market By Services (Specialty pharmacy services, Benefit plan design and consultation, Drug formulary management, Other Services), By Demand Determinants (Government Health Programs, Employer-sponsored Programs, Health Insurance Management) - Growth, Future Prospects, Competitive Analysis, 2018 - 2026

Industry Outlook

The global pharmacy benefit management market was worth US$ 405.4 billion in 2017 and is expected to grow at a compound annual growth rate (CAGR) of 5.4% from 2018 to 2026. Pharmacy benefit managers (PBM) are an organization that provides educational programs and services to aid healthcare seekers. The PBM acts as an intermediary between insurers and healthcare providers by negotiating with both pharmaceutical companies and pharmacies to get the best rates.

PBMs are also involved in determining retail prices for pharmaceutical products, negotiating rebates from pharmaceutical manufacturers based on total product sales volume, and obtaining post-sale price discounts and reimbursements from pharmacies.PBMs use their utilization management and buying power to lower the cost of pharmaceuticals. Most payers choose to contract with PBMs rather than procure drugs internally. Commercial insurers, Medicare, and Medicaid, are the major end-users for PBMs. Moreover, PBMs are also able to influence patients to switch to less expensive brand-name drugs by playing brands off one another.

Market Synopsis

However, criticism of the PBM model in the recent past is acting as a major restraint on the growth of the market. The Medicare Payment Advisory Commission has expressed concern about PBMs' failure to select the lowest-cost drugs. Moreover, a recent study indicated that PBMs are charging Medicaid-managed care organizations more for generic drugs as compared to the actual price to be paid to the pharmacies. Thus, these concerns over PBM's working model will negatively affect the market during the forecast period. In 2017, specialty pharmacy services held the largest share of the global pharmacy benefit management market. Growing market consolidation due to mergers and acquisitions in the market will boost the specialty pharmacy services market.

Periods of History and Forecast

This research report presents the analysis of each segment from 2016 to 2026, considering 2017 as the base year for the research. The compound annual growth rate (CAGR) for each of the respective segments was calculated for the forecast period from 2018 to 2026.

Report Scope by Segments

The pharmacy benefit management market report furnishes quantitative analysis along with its latest market trends. The market is segmented based on service type, demand determinants, and geography.

The key players currently engaged in the pharmacy benefit management market include CVS Health, Express Scripts Holding Company, Cigna, Anthem, Optumrx, Inc., Walgreens Boots Alliance, Inc., and Rite Aid Corp., among others.

Key questions are answered in this report.

  • How will the global pharmacy benefit management market perform during the forecast period from 2018 to 2026?
  • What are the latest trends in the pharmacy benefit management market and the most valuable opportunities for key players?
  • Who are the leading players in the global pharmacy benefit management market?
  • Which is the leading and fastest-growing region in the global pharmacy benefit management market?
  • What are the drivers and restraints governing the global pharmacy benefit management market?

Frequently Asked Questions:

The market for Pharmacy Benefit Management Market is expected to reach US$ 405.4 Bn by 2026.

The Pharmacy Benefit Management Market is expected to see significant CAGR growth over the coming years, at 5.4%.

The report is forecasted from 2018-2026.

The base year of this report is 2017.

CVS Health, Express Scripts Holding Company, Cigna, Anthem, Optumrx, Inc., Walgreens Boots Alliance, Inc., and Rite Aid Corp are some of the major players in the global market.

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Trusted By
Godaddy
Published Date:  Mar 2019
Category:  Pharmaceuticals
Report ID:   59632
Report Format:   PDF
Pages:   120
Rating:    4.2 (56)
Delivery Time: 24 Hours to 48 Hours   
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