Posted by Michael Wonder on 15 May 2017
Financing and distribution of pharmaceuticals in the United States
15 May 2017 - The pharmaceuticals market in the United States is complex.
The flow of pharmaceutical products from manufacturers to distributors to retailers to patients evolved separately from the financing mechanisms for the same products.
On the distribution side, physical drug product, such as a pill or vial of drug, leaves the manufacturer and is purchased by distributors. Distributors ship the product to retailers, where patients access their prescription medications.
On the financing side, pharmaceutical benefit managers (PBMs) provide services to help payers, for example, insurance companies, manage their drug benefits. Payers, the sources of financing for drug benefits, can include public sources (generally Medicare or Medicaid) or private sources (private health insurance and out-of-pocket payments).
