Blues Health Insurers Invests $55 Million in Venture Offering Generic Drugs at Cheaper Prices
A group of Blue Cross Blue Shield insurers is investing $55 million in an enterprise that intends to offer at low prices to their members on generic medicine that currently have little or no competition.
The Blue Cross Blue Shield Association (BCBSA) and 18 Blue Cross Blue Shield health insurers are working with Civica Rx, a non-profit shaped in 2018, to attempt to improve competition for hospital-based generic medicine.
The new unit will deal with medicine that members can buy through mail order or in retail pharmacies.
Commencing in 2022, it plans to start selling new rivals for about 7 to 10 expensive generic medicines that at present have one manufacturer, Civica Chairperson Dan Liljenquist, stated.
An advisory board will choose medicine.
Civica will be able to sell the medicine at a cheaper price than a current manufacturer by leveraging the volume of prescriptions among its Blues plans members to ensure discounts.
Members will profit from those cheaper costs based on their plan design, BCBSA technique head Maureen Sullivan stated. The lower price to the Blues plans could translate into lower out-of-pocket spending, financial savings on the overall premium, or potentially a lower co-pay or a co-pay waiver for sufferers, she stated.
Around 78% of the $335 billion in yearly U.S. drug spending goes to generic versions of branded medication that have misplaced patent protection, in accordance with generic sector trade group.
Large generic drugmakers say price competition has severely pinched profits for many of their medicines, resulting in industry consolidation.
That has elevated the number of medicine with solely one manufacturer, which may end up in vital price spikes on lifesaving medicines.