The time is now for laboratory benefit management

In the early 1990s, employers started to carve out prescription drug coverage from the medical benefit. This separation evolved into the pharmacy benefit management (PBM) industry of today. PBMs’ landscape focused on managing the cost of the pharmacy benefit and managing drug companies and pharmacies. PBMs consolidated the purchasing power of employers to obtain rebates from drug companies and discounts for pharmacies.

Over the past several years, a similar development has been occurring with laboratory testing. With the development of thousands of new diagnostic tests, the need for managing the cost of the laboratory benefit is now necessary. Laboratory benefit management (LBM) companies act as an intermediary between laboratory test companies and physicians to manage the use of certain laboratory tests.

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