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Employer Benefits IQ

PBM Contract IQ™

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Upload your PBM agreement for an employer-focused review of pricing, rebates, specialty terms, audit rights, data access, and contract protections.

AI-Assisted™
AI model & data: August 2026

Pharmacy action path

Move from contract findings to pharmacy strategy

Use the contract review to identify the protections, data requests, and vendor questions that deserve attention first.

Save progress in Benefits IQ
  1. 1

    Review PBM contract protections

    Identify pricing, rebate, audit, specialty, and data-access terms that need follow-up.

    Review contract
  2. 2

    Compare PBM options

    Use a consistent employer-first lens when evaluating alternatives or preparing an RFP.

    Compare PBMs
  3. 3

    Add findings to your action plan

    Keep the highest-priority pharmacy decisions connected to your broader benefits strategy.

    Open action plan

Your action plan ranks opportunities by impact and urgency as you complete tools.

View Benefits IQ action plan

Do not upload documents containing PHI or employee personal information.

Upload only plan-level contract documents: the master agreement, pricing exhibits, rebate exhibits, amendments, and addenda. Do not include employee names, Social Security numbers, member IDs, claim-level detail, or any other protected health information (PHI).

Safe to upload: master agreements, pricing schedules, rebate exhibits, amendments, addenda, proposals, and renewals.

Your document is transmitted over HTTPS to OpenAI's API for analysis. EmployerBenefitsIQ does not retain the uploaded file after processing. OpenAI's applicable API data-handling terms apply. View our data handling policy →

1

Add the contract documents

Include the master agreement plus pricing, rebate, specialty, and amendment exhibits when available. The tool reviews them together.

2

Add context (optional)

These details help prioritize findings. The tool will not invent missing contract terms.

3

Run the review

You'll receive a 0–100 contract score, 15-category scorecard, prioritized findings, missing protections, negotiation priorities, and due-diligence questions.

Uploaded documents are deleted immediately after processing and are not used to train AI models. Document security policy

What the tool reviews

Headline guarantees can look competitive while definitions, exclusions, affiliate compensation, specialty restrictions, audit limitations, or termination language shift economics back toward the PBM.

Pass-through vs. spread pricing
Rebate and manufacturer revenue definitions
Specialty pharmacy economics
Audit and verification rights
Claims data ownership and portability
Formulary and clinical control
Pricing guarantee exclusions
Fees and affiliate compensation
Auto-renewal and termination deadlines
CAA, RxDC, gag-clause and fiduciary support
Performance guarantees
Liability, security and transition terms

Frequently Asked Questions

What should I look for in a PBM contract?

Key PBM contract provisions to review include: (1) pricing basis — AWP discount guarantees for retail, mail, and specialty; (2) rebate pass-through — what percentage of manufacturer rebates are passed to the employer vs. retained by the PBM; (3) spread pricing — whether the PBM can charge more than it pays pharmacies; (4) audit rights — the employer's right to audit PBM claims and pricing; (5) data access — the employer's right to receive claims-level data; (6) termination provisions — notice period and data portability on termination.

What is spread pricing in a PBM contract?

Spread pricing occurs when a PBM charges the employer more for a drug than it reimburses the pharmacy, keeping the difference as profit. For example, the PBM might reimburse a pharmacy $10 for a generic drug but charge the employer $15 — keeping $5 as spread. Pass-through or transparent pricing contracts eliminate spread by requiring the PBM to charge the employer exactly what it pays the pharmacy, plus a disclosed administrative fee.

What audit rights should an employer have in a PBM contract?

Employers should negotiate: (1) the right to audit PBM claims data and pricing at least annually; (2) access to actual acquisition cost data for drugs dispensed; (3) the right to use an independent auditor of the employer's choosing; (4) a reasonable audit window (at least 24 months of historical data); (5) the right to recover overcharges identified in an audit; and (6) no restrictions on sharing audit findings with advisors or consultants.

What data access rights should be in a PBM contract?

Employers should require: (1) access to complete, claims-level data including NDC codes, days supply, and actual drug costs; (2) data in a standard format (NCPDP or equivalent) that can be analyzed independently; (3) the right to share data with the employer's TPA, consultant, and analytics vendors; (4) data delivery within 30 days of request; and (5) data portability on contract termination — the right to receive a complete historical data extract.

How often should employers renegotiate or rebid their PBM contract?

Employers should formally review PBM contract terms every 2–3 years and conduct a full market RFP every 3–5 years. The PBM market changes rapidly — new transparent PBM models, improved pricing benchmarks, and evolving specialty drug strategies mean that contracts signed 3+ years ago may be significantly below market. An PBM Contract IQ™ can identify specific provisions to renegotiate at your next renewal without a full rebid.

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Tool outputs are for informational and comparison purposes only. Results do not constitute a recommendation or endorsement of any vendor or approach. Verify all data independently and consult a qualified benefits advisor before making procurement or plan decisions. AI policy

Uploaded documents are deleted immediately after processing and are never used to train AI models. Document security policy