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Pharmacy Benefit Management in the US: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Pharmacy Benefit Management Market Research Report | Life Sciences | Healthcare Services | Jul 2015

Picture of health: Total health expenditure will increase, fostering industry revenue growth

IBISWorld’s Pharmacy Benefit Management market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

Report Snapshot
Market Share of Companies
Catamaran Catamaran market share
CVS Caremark CVS Caremark market share
Express Scripts Express Scripts market share
UnitedHealth Group Inc. UnitedHealth Group Inc. market share
Industry Statistics & Market Size
Revenue
$423bn
Annual Growth 11-16
12.3%
Annual Growth 16-21
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Profit
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Employment
33,545
Businesses
55
Industry Analysis & Industry Trends

Rising drug costs, higher consumer spending on healthcare and increasing prescription drug use drove up revenue for the Pharmacy Benefit Management industry over the five years to 2015. Rising drug costs caused health plan sponsors to increasingly turn to PBMs for cost management services. In turn, this trend drove industry operators to consolidate to better leverage larger retail pharmacies, customer networks and drug use data to negotiate better cost savings with drug manufacturers. Growth prospects for PBMs are strong; IBISWorld projects that industry revenue will expand steadily over the five years to 2020.... purchase to read more

Industry Report - Industry Investment Chapter

The Pharmacy Benefit Management industry has a high level of capital intensity. For every dollar spent on labor, about $0.84 is spent on capital expenditures. To run daily operations, a significant amount of capital is needed, including properties, plants and equipment. In addition, companies in the industry invest a considerable amount in the development of internal-use software. PBMs invest heavily in healthcare information technology (HCIT) systems to store data and process claims online. Some industry operators, such as Catamaran, offers a number of HCIT applications to clients on a license or fee-for-service basis. Additionally, wages only account for about 0.9% of industry revenue, indicating that the Pharmacy Benefit Management industry is not highly labor-intensive... purchase to read more

 


Industry ProductsRelated ReportsTable of Contents

What is the Pharmacy Benefit Management Industry?

This industry includes firms that provide pharmacy benefit management services. Industry firms are third-party administrators of government and employer-sponsored prescription drug programs. They are primarily responsible for processing and paying prescription drug claims.

Industry Products
Retail pharmacy servicesSpecialty pharmacy servicesBenefit plan design and consultationDrug formulary managementOther services
 
Industry Activities
Processing and paying prescription drug claimsManaging prescription drug plan costsPrescription drug plan design and administration


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