Pharmacy Benefit Manager Market Report

The rising prevalence of chronic diseases throughout the world is increasing the demand for therapeutic solutions. As a result, some multinational pharmaceutical organisations are concentrating their efforts on the development of high-priced branded drugs to treat chronic diseases. This has resulted in a tremendous increase in pharmaceutical expenditure in recent years. Based on a study published in Pharmaceutical Technology, pharmaceutical prices in the United States would rise by 4.0% in 2021, shattering a pattern of moderate increases in previous years. Individual prescription drug prices increased by 5% in 2021, according to SingleCare Administrators. This, together with a recent surge in prescription registrations for a wide range of chronic diseases such as cardiovascular disease, chronic lung disease and others, is pushing up healthcare expenses. According to a 2022 research conducted by SingleCare Administrators, around 4 billion prescriptions are given each year in the United States, with a significant rise in the number of prescription files estimated within a few years. As a result, a huge increase in medication prices, along with an increase in the number of prescriptions issued globally, are raising the healthcare burden. As a result, there is an increasing need for and acceptance among pharmacy benefit managers to help reduce prescription prices and control pharmaceutical spending throughout the world.

Increasing drug costs are one of the key reasons projected to boost the global pharmacy benefit manager industry. However, concerns about transparency in business models are a constant source of concern in pharmacy benefit manager services. The sources of revenue for these services are rarely revealed to drug manufacturers, retail pharmacy units or insurance companies. As a result, pharmacy benefit managers receive a significant share of medical spending. According to a study document published in January 2022 by Berkeley study Group, more than half of total spending on brand medications goes to the supply chain, which includes pharmacy benefit managers, rather than the drug manufacturers. As a result, insurance firms and drugs manufacturers are experiencing a significant decline in revenue. Due to this, the majority of insurance companies no longer collaborate with pharmacy benefit managers. As a consequence, the rate of acceptance of these services is declining, which is likely to limit the growth of the global pharmacy benefit manager market over the forecast period. Due to low literacy rates and a lack of awareness about the benefits of insurance plans, the public in undeveloped and emerging countries has limited penetration and acceptance of healthcare insurance policies. This is an additional important barrier to the global pharmacy benefit manager market's. Additionally, Centene Corporation acquired Magellah Health, Inc. in January 2022 in order to deliver complete healthcare solutions with improved outcomes at lower costs.

The global pharmacy benefit manager market is dominated by the United States. Major insurance companies, pharmaceutical manufacturers, retail pharmacy chains and pharmacy benefit management service providers all have their headquarters in the United States. Rising health insurance uptake is expected to boost market growth in the United States. More than half of the US population is expected to suffer from one or more chronic diseases. The rising cost of healthcare and rising insurance policy adoption is expected to fuel the expansion of the pharmacy benefit manager business in the United States. According to the Centres for Medicare and Medicaid Services, healthcare spending in the United States would increase by 2.7% in 2021, reaching US$ 4.3 trillion or US$ 12,914 per person. As a result of the high prevalence of health insurance providers, the pharmacy benefit manager industry in the United States has grown.  Furthermore, in the United States, the majority of patients rely on reimbursements to receive treatment for a variety of disorders. The government's favourable reimbursement standards are also likely to aid market growth in the United States.
 

The report provides a detailed overview of the pharmacy benefit manager market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for pharmacy benefit manager market has been offered for all regional market share, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions.