Pharmacy Benefit Management (PBM) refers to the process of managing prescription drug benefits on behalf of health insurers, employers, and other payers. PBMs negotiate with drug manufacturers and pharmacies to control costs and ensure that patients have access to necessary medications. They also develop formularies, which are lists of covered drugs, and implement programs to promote the use of cost-effective medications. PBMs play a crucial role in the healthcare system by streamlining the prescription process and helping to reduce overall drug spending. They also provide services such as medication therapy management and adherence programs to improve patient outcomes and ensure that individuals receive the right medications at the right time.