Quantifying a Pharmacy Benefit Manager (PBM) Fee-For-Service Business Model

Summary: Using CVS’s 2017 10-K reports to the SEC and its 2017 drug trend report, we convert its PBM segment (a.k.a. Caremark) reseller gross profits business model to a single transparent fee-for-service expressed in terms of dollars per member per year (PMPY).   The following table summarized our results: Our estimated FFS equivalent of $64 […]