Assessing PBM contracts with a basic ABC strategy

Plan sponsors can garner greater value from their pharmacy benefit manager (PBM) by routinely assessing their contractual terms and the PBM’s performance. The ABCs—auditing, benchmarking, and competitive bidding—of PBM contract assessment are key to delivering competitive pharmacy benefits on a cost-effective basis. In this article, Milliman’s Andrea Sheldon and Michelle Angeloni describe each of the three functions encompassing an ABC pharmacy benefit strategy.