Pharmacy Benefit Management Market Trends

Growth Drivers

• Surge in Need to Reduce Medication Errors that Occur Owing to Badly Written Prescriptions – Medication errors occur in preparation, distribution, dispensing, and administration. Furthermore, the medication errors take place on account of the negligence of manufacturers, formulators, pharmacists, doctors or nurses, or any medical person or caretaker. It causes serious damage to the body and may lead to poisoning and death in some cases. Therefore, there is a strong need to prevent medication errors, and it is expected to boost the pharmacy benefit management market growth in the upcoming years. For instance, every year, in the U.S. about 7000 to 9000 people die on account of medication errors.

• Rising Regionalization of Pharmacies to Increase More Approach to the People – As of 2022, the number of pharmacies and drug stores in the U.S. reached 28,000. In addition, in 2018, more than 800 pharmacies in the U.S. had specialty accreditations, such as independent and small regional pharmacies.

• Increase in Aged Population with Rising Longevity – From 2020 and 2050, it is predicted to be 427 million more people who are 80 years of age or older than there are today around the globe.
• Rise in Labor Costs that Rises the Investment Cost – As per estimates, civilian wages and salaries are increased to 5.3% by 2022 in the U.S.

Challenges

• Stringent Government Regulations – Stringent government regulations are estimated to play a significant restraint as PBMs. Now, they have a dominant role in determining not just what prescriptions patients get, and also how much consumers, pharmacists, and health plans spend for those drugs. Many critics charge that PBMs add significant costs to the healthcare system rather than saving it money. As an intermediary, they add levels of complexity and expenditures with no return for the government.

• No Transparency in the Earnings

• Lack of Awareness about Online Facilities