What is the primary role of a Pharmacy Benefit Manager (PBM)?

The primary role of a Pharmacy Benefit Manager (PBM) is to administer drug benefit programs. PBMs serve as intermediaries between insurers, pharmacies, and drug manufacturers. They are responsible for designing and managing the pharmacy benefit component of health insurance plans, which includes negotiating prices with drug manufacturers, determining the formulary (list of covered drugs), and managing the dispensing of medications.

By partnering with various stakeholders, PBMs work to optimize drug costs while ensuring patients have access to necessary medications. They also implement strategies for managing the utilization of drugs, which can involve prior authorization processes and step therapy protocols. This focus on drug benefit programs is crucial in controlling healthcare costs and ensuring appropriate medication use within health plans.

The other options do not align with the core functions of a PBM. Managing employer payroll is not relevant to their responsibilities, conducting medical research falls outside their purview, and handling pharmacy inventory pertains more to the operational aspects of individual pharmacies rather than the broader scope of pharmacy benefits management.