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Pharmacy Benefit Management Services


ProcurementIQ’s Pharmacy Benefit Management Services procurement research is intended to help you save time and money in the initial research stages of the buying process. Our data and analysis explain the characteristics, pricing dynamics, supply chain risks and negotiation tactics of Pharmacy Benefit Management Services to help your company negotiate strategically with suppliers. Our report insights also give your company the credibility to work with internal stakeholders and executives to better manage the sourcing process.
doneBenchmark Price
doneRFP/RFQ/Negotiation Questions
done3 Year Price Forecast
doneSupply Chain Analysis
doneSupplier Intelligence
doneSample Buyer Decision Scorecard

Pharmacy Benefit Management Services - Recent Price Trend

The price of PBM services has been rising at an estimated annualized rate of 3.2% in the three years to 2018. Growing demand and input costs have contributed to this price growth. Because suppliers must purchase pharmaceuticals in order to provide market services, rising drug prices have been one of the primary reasons for market price growth during the period. The price of pharmaceuticals has.

Pharmacy Benefit Management Services - Total Cost of Ownership

The total cost of ownership (TCO) for PBM services is high. Buyers pay a predetermined transaction fee per script and then purchase the drugs in conjunction with PBM administrative services at contracted prices. These additional costs typically add up to more than 100.0% of total transaction fees. Other hidden costs include markups to the average wholesale price (AWP) of prescription drugs,.

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About this Report

This report is intended to assist buyers of pharmacy benefit management (PBM) services. A PBM provider is a third-party company that manages the sale and distribution of government and employer-sponsored prescription drugs. In addition to processing prescription drug claims, PBM firms develop and maintain formulary. PBM providers leverage their size to contract with pharmacies and negotiate discounts and rebates with pharmaceutical manufacturers. This report does not focus on pharmacies and drugstores. Common buyers of PBM services include health insurance carriers, pharmacies and healthcare facilities.

Table of Contents

At a Glance

Executive Summary

Price Environment
 Price Fundamentals
  Benchmark Price
  Pricing Model
 Price Drivers
 Input Cost Drivers
 External Demand Drivers
 Recent Price Trend
 Price Forecast

Product Characteristics
 Product Life Cycle
 Total Cost of Ownership
 Product Specialization
 Related Goods
 Subsitute Goods
 Quality Control
Supply Chain & Vendors
 Supply Chain Dynamics
  Supply Chain Risk
  Geographic Locations
 Competitive Environment
  Market Share Concentration
  Vendor Company Types
 Market Profitability
 Switching Cost

Purchasing Process
 Buying Basics
 Buying Lead Time
  Selection Process
  Buying-Decision Scorecard
 Key RFP Elements

Negotiation Questions

Buyer Power Score Components

Jargon & Glossary

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