A Pharmacy Benefit Manager (PBM) is a third-party administrator that manages prescription drug benefits on behalf of health insurers, employers, and other plan sponsors. PBMs negotiate prices with drug manufacturers and pharmacies to help control costs and improve access to medications for patients. They also create 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 process of obtaining prescriptions and ensuring that patients receive the medications they need. They also help manage the overall spending on pharmaceuticals, which can significantly impact the costs for both patients and healthcare providers.