Pharmacy Benefit Manager

/ˈfɑːrməsi ˈbɛnɪfɪt ˈmænɪdʒər/

Definitions

  1. (n.) A third-party administrator of prescription drug programs for health plans, negotiating with drug manufacturers and pharmacies to manage drug benefits and control costs.
    The pharmacy benefit manager negotiated lower prices for the insurance company's prescription drug coverage.

Forms

  • pharmacy benefit manager
  • pharmacy benefit managers

Commentary

Primarily used in health law and insurance contract contexts; careful drafting distinguishes PBMs from insurers and pharmacies due to differing legal roles and regulations.

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.

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