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Hybrid In-sourced PBM Model

Health plans, MCOs, TPAs and payers that have the resources and capacity to engage in this "new generation" pharmacy model have been extraordinarily successful in saving money, creating local control, reducing trends and generating revenue streams.

PBMs offer a vast array of services and clients can duplicate or outsource to unify their offering. The standard marketplace PBM offers full service capabilities; however, they may actually own only a few of the components themselves and subcontract the rest.

Unbundling the varied services provides a greater knowledge of actual drug ingredient costs, total control of drug formulary placement and product selection, revenue gains from traditional network arrangements and rebate proceeds, reduced administrative costs and increased service levels.