What is Global Pharmacy Benefit Management (PBM) Market?
The Global Pharmacy Benefit Management (PBM) Market is a vast and complex system that plays a crucial role in the healthcare industry. It is a third-party administrator of prescription drug programs for commercial health plans, self-insured employer plans, Medicare Part D plans, the Federal Employees Health Benefits Program, and state government employee plans. Essentially, PBMs are primarily responsible for developing and maintaining the formulary, contracting with pharmacies, negotiating discounts and rebates with drug manufacturers, and processing and paying prescription drug claims. They are designed to help control the cost of prescription drugs and ensure patient safety by providing information on the appropriate use of medications.
Government, Non-Government in the Global Pharmacy Benefit Management (PBM) Market:
The Global Pharmacy Benefit Management (PBM) Market is divided into two main sectors: government and non-government. The government sector is the largest segment, accounting for over 70% of the market. This is due to the fact that government health programs, such as Medicare and Medicaid, rely heavily on PBMs to manage prescription drug benefits for their beneficiaries. On the other hand, the non-government sector includes commercial health plans and self-insured employer plans. These entities also utilize PBMs to help manage their prescription drug benefits, but to a lesser extent than government programs. Despite the differences in size and scope, both sectors rely on PBMs to help control drug costs and ensure the safe and effective use of medications.
Mail-order Pharmacy Services, Non-mail Pharmacy Services in the Global Pharmacy Benefit Management (PBM) Market:
The Global Pharmacy Benefit Management (PBM) Market also has a significant impact on the way pharmacy services are delivered. This is particularly evident in the areas of mail-order pharmacy services and non-mail pharmacy services. Mail-order pharmacy services are a convenient and cost-effective way for patients to receive their medications. They allow patients to order their prescriptions online and have them delivered directly to their homes. This not only saves patients time and money, but also helps to improve medication adherence. Non-mail pharmacy services, on the other hand, include traditional brick-and-mortar pharmacies as well as specialty pharmacies. These services are essential for patients who need immediate access to their medications or who require special handling or monitoring.
Global Pharmacy Benefit Management (PBM) Market Outlook:
The global Pharmacy Benefit Management (PBM) market has shown significant growth in recent years. In 2022, the market was valued at US$ 490170 million. It is projected to reach a value of US$ 683590 million by 2029, demonstrating a Compound Annual Growth Rate (CAGR) of 5.7% during the forecast period from 2023 to 2029. This growth is largely driven by the increasing demand for cost-effective prescription drug programs and the growing need for safe and effective medication use. The market is dominated by three major PBM manufacturers: Express Scripts, CVS Health, and OptumRx, which collectively account for 75% of the market. The European Union holds the second largest market share, accounting for nearly 2% of the global market.
| Report Metric | Details |
| Report Name | Pharmacy Benefit Management (PBM) Market |
| Accounted market size in 2023 | US$ 490170 million |
| Forecasted market size in 2029 | US$ 683590 million |
| CAGR | 5.7 |
| Base Year | 2023 |
| Forecasted years | 2023 - 2029 |
| Segment by Type |
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| Segment by Application |
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| By Region |
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| By Company | CVS Health (CVS), Express Scripts, OptumRx (UnitedHealth), Humana Pharmacy Solutions, Prime Therapeutics, Medimpact Healthcare, Magellan Health, BC/BS, Vidalink, Sea Rainbow, Cachet, CRHMS |
| Forecast units | USD million in value |
| Report coverage | Revenue and volume forecast, company share, competitive landscape, growth factors and trends |
