Pharmacy benefit management: Pros and cons of various approaches

Pharmacy benefit managers (PBMs) historically have used practices such as broad pharmacy networks and pricing models that rely on several revenue sources. Recently, new approaches have placed substantial emphasis on transparency, suggesting that concepts such as limited networks and pass-through pricing can minimize costs. But is transparency really a silver bullet for optimizing pharmacy benefit management?

This paper examines pricing models, distribution models, and other factors that determine the cost and value of PBM services.