Anthem, Spurning Express Scripts, Will Join With CVS To Start A Drug Plan Business
The new business, which will start in 2020, will be a new pharmacy benefit manager (PBM) company. PBMs serve as intermediaries between drug companies and the prescription plans, but they have come under increasing pressure for not being transparent about how much money they save and how much is passed along to consumers.
The New York Times:
Anthem Joins With CVS To Start Its Own Pharmacy Business
Anthem, one of the nation’s major health insurance companies, said on Wednesday that it planned to start its own business to manage prescription drug plans by partnering with CVS Health, the large pharmacy benefit manager and drugstore chain. (Abelson, 10/18)
Bloomberg:
Anthem Breaks With Express Scripts, Will Start Own Drug Plan
Health insurer Anthem Inc. plans to set up its own pharmacy benefits management unit, signaling a final break with Express Scripts Holding Co. after accusing it of overcharging by billions of dollars. The move means Express Scripts will not only lose its biggest client but also face a new rival. Anthem’s new unit, called IngenioRx, will grow its own business with a “full suite” of services, the insurer said in a statement on Wednesday. (Flanagan and Rausch, 10/18)
Modern Healthcare:
Anthem's New PBM To Spark Change Throughout The Industry
There has been heightened scrutiny on the role PBMs play in the pricing of drugs in recent years. PBMs, which oversee prescription drug benefits for employers and insurers, negotiate drug discounts with pharmaceutical companies, build pharmacy networks and create their own drug benefit plans, are involved in a blame game across the secretive pharmaceutical supply chain. PBMs, drug manufacturers, insurers and wholesale distributors have pointed fingers at each other to try to explain why savings via negotiated rebates aren't ultimately passed to the consumer. (Kacik, 10/18)
Related KHN video: Middlemen Who Save $$ On Medicines — But Maybe Not For You
