The global pharmacy benefit management market is expected to grow from $506.27 billion in 2021 to $537.78 billion in 2022 at a compound annual growth rate (CAGR) of 6.22%. The pharmacy benefit management market is expected to reach $685.91 billion in 2026 at a CAGR of 6.27%.
The pharmacy benefit management market consists of sales of pharmacy benefit management services and solutions by entities (organizations, sole traders, and partnerships) that refer to a collection of businesses that function as intermediaries between insurance companies, pharmacies, and drug distributors. PBMs, ensure that insurers and insurance companies pay reduced prescription costs by negotiating with pharmacists and medicine producers.
The main services of the pharmacy benefit management (PBM) are mail-delivery, specialty pharmacy, and preferred network pharmacy. Mail-delivery refers to mail order delivery that directly delivers the medicines to the desired location. These services are provided for different types of PBM.
The different types of PBMs are commercial health plans, self-insured employer plans, medicare part D plans, and federal employees health benefits program. These different PBMs cater to major end-users which include pharmacy benefit management organization, mail order pharmacies, retail pharmacies, inpatient pharmacies, and outpatient pharmacies.
North America was the largest region in the pharmacy benefit management market in 2021. Asia Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in pharmacy benefit management market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The rise in the number of people availing insurance significantly contributes to the growth of the pharmacy benefit management market. Insurance provides a solution to deal with the increased medical costs by covering the expenses related to treatment, hospitalization, health check-ups, and hospitalization expenses.
Similarly, pharmacy benefit management (PBM) supports end-to-end healthcare products by combining medical as well as pharmaceutical products. This enables the insurers to have extensive information regarding the patients that helps the insurers provide efficient programs to patients.
For instance, according to India Brand Equity Foundation (IBEF), new premiums of life insurers registered 22.2% growth in September 2021, up 2.9% from September 2020. Therefore, the rise in the number of people availing of insurance is driving the growth of the pharmacy benefit management market.
Strategic Partnerships are a key trend in the pharmacy benefit management market. Strategic partnerships help the organizations enter into a new market and expand by leveraging each other's resources. In February 2021, Navitus Health Solutions, a US-based full-service pharmacy benefit management company, entered into a partnership with WithMe Health, Inc, a US-based contemporary pharmacy benefit manager (PBM) alternative that prioritizes people, results, and overall cost of care.
This partnership gives Navitus access to WithMe Health's medication guidance capabilities, which will help employers and members get the most benefit from their medications by ensuring members are on the right medications, and support to stay adherent, and responding to therapy.
In January 2022, Centene, a US-based managed care company that provides healthcare solutions to families and individuals, acquired Magellan, a US-based pioneer in handling the health care industry's fastest-growing and most complicated sectors, including special populations, full pharmacy benefits, and other specialty areas, in a $2.2 billion deal.
Through this acquisition, Centene will be able to provide whole-health, integrated healthcare solutions to complicated, high-cost populations, resulting in improved health outcomes at reduced costs.
The countries covered in the pharmacy benefit management market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK and USA.
Major players in the pharmacy benefit management market are
3. Pharmacy Benefit Management Market Trends And Strategies
4. Impact Of COVID-19 On Pharmacy Benefit Management
5. Pharmacy Benefit Management Market Size And Growth 5.1. Global Pharmacy Benefit Management Historic Market, 2016-2021, $ Billion 5.1.1. Drivers Of The Market 5.1.2. Restraints On The Market 5.2. Global Pharmacy Benefit Management Forecast Market, 2021-2026F, 2031F, $ Billion 5.2.1. Drivers Of The Market 5.2.2. Restraints On the Market
6. Pharmacy Benefit Management Market Segmentation 6.1. Global Pharmacy Benefit Management Market, Segmentation By Services, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
Preferred Network Pharmacy
6.2. Global Pharmacy Benefit Management Market, Segmentation By Type, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
Commercial Health Plans
Self-Insured Employer Plans
Medicare Part D Plans
Federal Employees Health Benefits Program
6.3. Global Pharmacy Benefit Management Market, Segmentation By End User, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
Pharmacy Benefit Management Organization
Mail Order Pharmacies
7. Pharmacy Benefit Management Market Regional And Country Analysis 7.1. Global Pharmacy Benefit Management Market, Split By Region, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion 7.2. Global Pharmacy Benefit Management Market, Split By Country, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion