PBM Competition in Pharmaceutical Supply Chain: Formulary Design and Drug Pricing

@article{Kouvelis2015PBMCI,
  title={PBM Competition in Pharmaceutical Supply Chain: Formulary Design and Drug Pricing},
  author={Panagiotis Kouvelis and Yixuan Xiao and Nan Yang},
  journal={Manufacturing & Service Operations Management},
  year={2015},
  volume={17},
  pages={511-526}
}
We model the competition among multiple Pharmacy Benefit Managers (PBMs) for the patronage of a client organization. Each PBM selects a list of prices to be charged to the client organization for each of the branded and generic drugs within a therapeutical class (price decision) and a formulary list that assigns branded drugs to preferred or non-preferred tiers (formulary decision). Drug manufacturers offer rebates to PBMs for drugs on preferred tier of formularies. The individuals… CONTINUE READING
Recent Discussions
This paper has been referenced on Twitter 2 times over the past 90 days. VIEW TWEETS

References

Publications referenced by this paper.
Showing 1-10 of 25 references

The role of patient co-payments in prescribing and refill decisions

  • M. Carrera
  • Working paper, University of California, Berkeley…
  • 2010
Highly Influential
5 Excerpts

Pharmaceutical distribution through PBMs: Market shares, bargaining power and insurance plan heterogeneity

  • H. Cui, P. Desai.
  • Working paper, Carlson School of Management…
  • 2010
Highly Influential
4 Excerpts

Incentives to form coalitions with Bertrand competition

  • R. Deneckere, C. Davidson.
  • The RAND Journal of Economics 16(4) 473–486.
  • 1985
Highly Influential
6 Excerpts

Applied welfare analysis with discrete choice models

  • K. Small, H. Rosen
  • FTC: Drug and PBM mergers and drip pricing…
  • 1981
Highly Influential
4 Excerpts

Top 10 pharmacy benefit management companies and market share by annual prescription volume, as of 2nd quarter 2011

  • Pharmacy Benefit Management Institute.
  • http://pbmicom.web33.winsvr.net/PBMmarketshare2…
  • 2014
Highly Influential
2 Excerpts

Interview on current practice in PBM industry

  • S. L. Lang
  • https://www.linkedin.com/in/susanllang.
  • 2013
1 Excerpt

National health expenditures; aggregate and per capita amounts, annual percent change and percent distribution, by type of expenditure: Selected calendar years 1960-2012

  • Centers for Medicare, Medicaid Services.
  • http://www.cms.gov/Research-Statistics-Data-and…
  • 2012
2 Excerpts

Employer health benefits: 2011 annual survey

  • G. Claxton, M. Rae, +6 authors J. Pickreign.
  • The Kaiser Family Foundation and Health Research…
  • 2011
1 Excerpt

Medicare Part D formularies, 2006-2011: Update to chartbook

  • J. Hoadley, E. Hargrave, K. Merrell.
  • MedPac.
  • 2011
1 Excerpt

Similar Papers

Loading similar papers…