Drug distribution system

Employer-provided private health insurance is the predominant source of health-care coverage in the United States. As public health insurance programs, Medicare is available for those with age 65 or older and Medicaid is available for those with low household income. As an intermediary between these insurers and pharmacies, pharmacy benefit managers administer prescription drug benefits and affect drug distribution systems. In this chapter, two main categories of drug distribution systems are discussed. First, an open-channel distribution network is the most common form of the drug distribution system in which multiple drug wholesalers are utilized to maximize drug availability in community pharmacies. Second, a limited distribution network is primarily used for specialty drugs. In this system, specialty pharmacies play an important role in increasing patient access to treatment and ensuring the safe use of specialty drugs.