PUBLISHER: Grand View Research | PRODUCT CODE: 1869952
PUBLISHER: Grand View Research | PRODUCT CODE: 1869952
The U.S. drug utilization management market size was estimated at USD 39.77 billion in 2024 and is projected to reach USD 75.79 billion by 2033, growing at a CAGR of 7.49% from 2025 to 2033. Increasing use of automated utilization management services and rising need for improved prescription patterns for specialty drugs to lower the overall cost & improve patient outcomes is expected to drive market growth.
Drug utilization management criteria, such as Prior Authorizations (PAs), step therapy, and quantity limits, are designed to optimize patient outcomes and reduce waste, errors, unnecessary drug use, & costs. These programs are essential for controlling healthcare costs, influencing patient care decisions, and improving the quality of treatment. Collaboration between prescribers, payers, and pharmacists has become more emphasized to ensure patients receive timely access to drugs while maintaining cost-effectiveness and value. The future of utilization management involves a growing reliance on pharmacists in the PA process, the adoption of Electronic PA (ePA) to streamline approvals, and the development of best practices & national standards for electronic health information exchange.
The need for cost containment in healthcare is further emphasized by the fact that the U.S. spends a substantial portion of its GDP on healthcare, with prescription drugs being a major source of this expenditure. According to the U.S. Centers for Medicare & Medicaid Services (CMS), in 2025, the U.S. spent USD 4.9 trillion on healthcare services, and around USD 449.7 billion was spent on prescription drugs in 2023, which is a 11.4% increase from 2022. To manage these costs effectively, healthcare providers and payers are implementing various strategies, including UM, which involves the use of clinical guidelines, formularies, and other tools to ensure that patients receive the most appropriate & cost-effective treatments. This approach not only helps reduce healthcare costs but also improves patient outcomes by ensuring that patients receive the best possible care.
U.S. Drug Utilization Management Market Report Segmentation
This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the U.S. drug utilization management market report based on program type and end-use: