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What is the difference between a "Transparent" PBM and a traditional PBM?
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Transparent and Traditional PBM services are very similar.
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A key difference is that a Traditional PBM has many different revenue streams that are not disclosed to the client.
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Transparent PBM companies supposedly reveal all sources of revenue. However, some Transparent PBM organizations rely on the clients lack of understanding of the complicated PBM industry and they hide revenue sources and practices that may not be in the client's best interests.
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A Pass-Thru PBM is one that is not only transparent in its model, but only charges an administration fee for its services. This means that all rebate revenue is passed to the client. There is no retail spread garnered by the PBM and its mail service operations are charged to the client at acquisition or contractual cost.
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