But in a recent lawsuit, CVS argues that Amazon could pose a threat by negotiating directly with insurers, bypassing its lucrative pharmacy benefits manager, or PBM, business.would move into health care in 2017, health-care executives had a ready answer: We are not afraid.
Among other functions, PBMs help insurance companies negotiate lower drug costs. Manufacturers arrange discounts, called rebates, with the benefits managers so they can fix a spot for their products on a PBM's list of preferred drugs. It's a huge business — CVS' PBM business represented approximately 60% of its overall revenues in 2018, or around $116 billion, according to a person familiar with CVS' business.
But he said the company had "no immediate plans" to compete with CVS Caremark's core offering, its PBM.