Smaller PBMs Have Higher Satisfaction Ratings, Survey Finds

by Leslie Small

While client-filed lawsuits against PBMs and regulatory scrutiny of their business models continue to make headlines, a newly released survey finds that plan sponsors' overall satisfaction with their PBMs is relatively high. But Pharmaceutical Strategies Group's 2020 Pharmacy Benefit Manager Customer Satisfaction Report also reveals that customer satisfaction of PBMs varies depending on the firms' size and the type of client being served.

"The size of the PBM does make a difference, often in the services that are provided because of scale. It also makes a difference in the types of customers who choose a PBM — so many customers are looking to middle-market, midsized PBMs for more flexibility, where others look to the larger PBMs for perhaps deeper discounts," Sharon Phares, Ph.D., senior vice president of research and data innovation at PSG, said during a May 25 webinar.

In its survey of 269 plan sponsors who provide pharmacy benefits to their employees/members, PSG found that overall satisfaction with PBMs averaged 8.0 on a 1-10 scale in 2020. PBMs with more than 20 million members had a 7.9 average satisfaction rating, while PBMs with 20 million or fewer members scored an 8.6.

Satisfaction levels also varied based on plan sponsor type, with employers averaging an 8.1 out of 10 and labor unions averaging 8.6, while the category comprising health plans, insurance companies and third-party administrators averaged a lower 7.7.

In addition, 84% of respondents indicated that their PBMs were aligned with their goals — with the percentage slightly higher (94%) among clients of small- to midsized PBMs than among clients of large PBMs (82%). Like alignment of goals, another measure — financial transparency — is critical for fostering trust between PBMs and their customers, Tracy Spencer, senior vice president and practice leader for employer groups, labor and health systems at PSG, pointed out during the webinar.

While the percentage of respondents to PSG's survey who said their financial relationship with their PBM was somewhat or completely transparent was high — 90% — respondents' overall satisfaction rating with their PBMs' transparency was only 7.3 out of 10. "Transparent financial relationships typically require that information be as accessible and straightforward as possible…however, there is no standard definition of transparency and if you ask 100 customers how they define it, you'll get nearly 100 different definitions," Phares said.

From RADAR on Drug Benefits