Overview

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

Industry Threats & Opportunities

  • Rising drug costs and increased consumer bases have bolstered industry demand
  • Growth in the number of physician visits has contributed to higher prescription drug use
  • PBMs that operate mail order and online pharmacies will experience the strongest growth

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    Industry Analysis & Industry Trends

    Historically, pharmacy benefit managers (PBMs) have served as third-party administrators of prescription drug programs. Today, the role of PBMs have expanded to include programs that help control prescription costs, such as offering drug formularies that feature lower cost therapeutic categories. Rising drug prices, particularly specialty drugs, have incited health insurers to turn to PBMs for cost management services. Due to the patent cliff in 2012, which caused many brand-name drugs to lose their patent exclusivity, more consumers have purchased lower-priced generic drugs. Overall, the patent cliff has benefited the industry due to PBMs typically reporting financial gains when an influx of generics come off of manufacturers' drug pipelines...

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    Industry Report - Industry SWOT Analysis Chapter

    The Pharmacy Benefit Management industry is in the growth phase of its life cycle. Industry value added (IVA), which measures an industry's contribution to the overall economy, is expected to grow at an annualized rate of 11.6% over the 10 years to 2021. Comparatively, GDP is anticipated to rise at an average annual rate of 2.1% over the same period.

    While the industry is consolidating, which is typically indicative of an industry in the mature life cycle stage, it has enabled PBMs to have the leverage required to secure low-cost drugs from drug manufacturers.

    The patent cliff, which resulted in patent drugs losing their exclusivity from 2011 and 2015, enabled more new generic drugs to enter the market. Typ..

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    Additional Insights for the Pharmacy Benefit Management Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Pharmacy Benefit Management Industry are

  • Having a diverse range of clients
  • Well-developed internal processes
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Total health expenditure and Number of employees in the Pharmacy Benefit Management industry impact industry performance..

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    Look under the hood?

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    Industry Products

    What is the Pharmacy Benefit Management Industry?

    This industry includes operators that provide pharmacy benefit management services. Industry operators 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 services
    Specialty pharmacy services
    Benefit plan design and consultation
    Drug formulary management
    Other services
    Industry Activities
    Processing and paying prescription drug claims
    Managing prescription drug plan costs
    Prescription drug plan design and administration

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Total health expenditure
  • Number of employees
  • Number of physician visits
  • Number of people with private health insurance
  • Median age of population
  • Regulation for the Health and Medical Insurance industry

  • Current Performance
  • Higher prescription drug use drives demand
  • Rising drug costs spurs consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Healthcare reform will boost revenue
  • Profit margins miss out
  • Table: Pharmacy Benefit Management Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Pharmacy Benefit Management Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Health & Medical Insurance
  • Health & Welfare Funds
  • Public Administration
  • Consumers

  • Key Selling Industries
  • Brand Name Pharmaceutical Manufacturing
  • Generic Pharmaceutical Manufacturing

  • Products & Services
  • Retail pharmacy services
  • Specialty pharmacy services
  • Other services
  • Benefit plan design and consultation
  • Drug formulary management
  • Chart: Pharmacy Benefit Management Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Government health programs
  • Employer-sponsored programs
  • Health insurance companies
  • Other programs
  • Individuals (out-of-pocket)
  • Chart: Major Market Segmentation for the Pharmacy Benefit Management Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Operating expenses
  • Chart: Cost Structure Benchmarking – Sector vs Pharmacy Benefit Management

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Pharmacy Benefit Management Industry

  • Industry Globalization
    Major Companies
    CVS Health CorporationExpress Scripts Holding CompanyUnitedHealth Group Inc.
  • Table: CVS Health Corporation - financial performance
  • Table: Express Scripts Holding Company - financial performance
  • Table: UnitedHealth Group Inc. - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Pharmacy Benefit Management Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Pharmacy Benefit Management Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Total health expenditure (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Chronic Illness
  • A disease that is long-lasting or recurrent.
  • Formulary
  • A list of medications designed to specify medications that can be prescribed under a particular contract.
  • Prescription Medication
  • A licensed medicine that requires medical approval to obtain.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Pharmacy Benefit Management:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Pharmacy Benefit Management market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Pharmacy Benefit Management, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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