PBM
Medical abbreviation · Pharmacy
| Stands for | Pharmacy benefit manager |
|---|---|
| Categories | Medical |
PBM stands for Pharmacy benefit manager, a pharmacy abbreviation.
Company that administers prescription drug benefits for insurers and employers: building formularies, negotiating rebates with manufacturers, processing pharmacy claims and running mail-order pharmacies. The three largest US PBMs handle about 80 percent of prescriptions.
Example: Our PBM moved the brand inhaler to a non-preferred tier, so the copay doubled.
Usage notes
The largest PBMs are CVS Caremark, Express Scripts (owned by Cigna) and OptumRx (owned by UnitedHealth Group). Their use of manufacturer rebates and "spread pricing" has drawn Federal Trade Commission scrutiny and state legislation. Independent pharmacies often argue that PBM reimbursement rates are below their acquisition cost.
Related abbreviations
More pharmacy abbreviations
- oint – Ointment
- OROS – Osmotic-controlled release oral delivery system
- OTC – Over-the-counter
- P&T – Pharmacy and therapeutics committee
- PA – Prior authorization
- PAR – Periodic automatic replenishment
- PDL – Preferred drug list
- PDMP – Prescription drug monitoring program
- PEC – Primary engineering control
- Ph. Eur. – European Pharmacopoeia
- PI – Package insert
- PIC – Pharmacist-in-charge
See all 134 pharmacy abbreviations →
This entry is for general education and is not medical advice. Abbreviation use varies between institutions; always confirm in context.