Pharmacy Benefit Management
/ˈfɑːrməsi ˈbɛnəfɪt ˈmænɪdʒmənt/
Definitions
- (n.) The administration and management of prescription drug benefits by a third party, typically involving formulary design, claims processing, and negotiation with drug manufacturers, usually within the context of health insurance plans.
The health insurer outsourced its pharmacy benefit management to a specialized company to reduce costs and improve service.
Forms
- pharmacy benefit management
Related terms
See also
Commentary
The term is primarily used in regulatory and contractual contexts involving healthcare benefits; precise definition aids clarity in drafting insurance agreements and compliance documents.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.