What is the function of a prescription benefit manager (PBM)?

The function of a prescription benefit manager (PBM) involves managing prescription drug benefits for health insurers and employers. PBMs act as intermediaries between insurance companies, pharmacies, and drug manufacturers, ensuring that patients access their medications while helping control costs for both insurers and employers. They negotiate prices with drug manufacturers, develop formularies, and implement strategies that promote the use of generic medications when appropriate. This ultimately helps to streamline and manage the delivery of prescription drugs, enhancing the efficiency of the healthcare system.

Options that focus on overseeing hospital pharmacy operations, dispensing medications, or providing patient counseling do not align with the primary role of a PBM. Instead, they represent functions associated with other healthcare professionals and systems, such as pharmacists or hospital administration, which are not the direct responsibilities of a PBM.