Glossary · Drug coverage
What is a pharmacy benefit manager (PBM)?
A pharmacy benefit manager is a company that manages prescription drug benefits for health plans and employers, including negotiating rebates with drug makers and building pharmacy networks. The FTC reported that the six largest PBMs manage nearly 95% of US prescriptions.
Definition and figures from FTC, checked October 23, 2026. This page explains the term; it does not recommend a plan.
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PBM: the facts
| Item | Fact | Source |
|---|---|---|
| Market share (FTC, July 2024) | Six largest PBMs manage nearly 95% of prescriptions filled in the US | FTC: Interim staff report on prescription drug middlemen (July 9, 2024) |
| Top three (FTC, 2023 data) | Processed nearly 80% of about 6.6 billion prescriptions dispensed | FTC: Interim staff report on prescription drug middlemen (July 9, 2024) |
| Rebates | PBMs and brand drug makers negotiate prescription drug rebates | FTC: Interim staff report on prescription drug middlemen (July 9, 2024) |
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What does PBM mean in health insurance?
A pharmacy benefit manager is a company that manages prescription drug benefits for health plans and employers, including negotiating rebates with drug makers and building pharmacy networks. The FTC reported that the six largest PBMs manage nearly 95% of US prescriptions.