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The Pharmacy Benefit Management Market is estimated to be valued at US$ 858.38 Bn in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The Pharmacy Benefit Management Market involves managing prescription drug benefits in terms of cost, utilization, and choice of drugs for both public and private healthcare organizations. It helps reduce prescription drug costs by negotiating discounts and rebates with drug manufacturers and creating a list of preferred drugs known as a formulary. It provides services like tiered co-payments/co-insurance in which higher copays are charged for higher-priced brands while lower copays are charged for generics. This encourages use of cost-effective drugs.
Market Dynamics:
One of the major driver for the market growth is the rising healthcare costs and prescription drug costs. Pharmacy benefit managers help negotiate rebates and discounts from drug manufacturers to reduce prescription drug costs for healthcare payers and individuals. They also encourage use of generic drugs which are cheaper than their branded counterparts through tiered formularies. This drives the market growth. Additionally, the growing aging population and prevalence of chronic diseases is another driver. The elderly population and people with long term diseases require long term medication and regular drug prescriptions fueling the demand for pharmacy benefit management services.
Segment Analysis
The pharmacy benefit management market can be segmented based on service, end user and end user. The dominant sub-segment in the service segment is prescription drug claims processing service. This sub-segment has the largest market share as claims processing is one of the primary services offered by pharmacy benefit managers and it forms a major revenue stream for them.
Read More Insights: https://www.coherentmarketinsights.com/market-insight/pharmacy-benefit-management-market-62
PEST Analysis
Political: Regulations regarding healthcare pricing and transparency might affect the operations of pharmacy benefit managers.
Economic: Growth in healthcare expenditure and increasing demand for cost control are driving the growth of the pharmacy benefit management market.
Social: Rising prevalence of chronic diseases and growing geriatric population who need long term medication are fueling market growth.
Technological: Adoption of advanced technologies like AI, analytics, blockchain etc. by pharmacy benefit managers to improve their services.
Key Takeaways
The global pharmacy benefit management market is expected to witness high growth, exhibiting CAGR of 6.0% over the forecast period, due to increasing burden of chronic diseases.
Regional analysis: North America dominated the global market in 2023 and is expected to remain the highest revenue generating region during the forecast period. This is attributed to factors such rising healthcare costs, presence of major players and higher adoption of pharmacy benefit management services.
Key players analysis: Key players operating in the pharmacy benefit management market are CVS Health, SS&C Technologies, Inc.,Anthem Inc., Medimpact, Express Scripts Holding Company, Benecard, Services, LLC, CaptureRx Inc., Change Healthcare, OptumRx, Inc., Cigna. These players are focusing on expanding their service portfolio and geographical footprint to enhance their market share.
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
