Insurers To Invest $55M In Making Cheaper Versions Of Expensive Generic Drugs In Sign Of Growing Frustration
The Blue Cross Blue Shield Association and 18 of its member organizations are teaming up with Civica Rx, a nonprofit that is already selling drugs used in hospitals to health systems. The move comes not long after California Gov. Gavin Newsom floated a similar proposal, in which the state would contract with outside manufacturers to sell generic drugs under a California label.
The New York Times:
Major Insurers Pledge $55 Million To Try To Lower Generic Drug Prices
A major group of insurers said it would invest $55 million to create cheaper versions of expensive generic drugs for which there is little competition, in a further sign of dissatisfaction with the pharmaceutical industry’s price-setting practices. The decision by the Blue Cross Blue Shield Association and 18 of its member organizations, which insure about 40 million people, is part of a partnership agreement with Civica Rx, a nonprofit that is already selling drugs used in hospitals to health systems around the country. (Thomas, 1/23)
Modern Healthcare:
Civica Rx Launches Spinoff To Help Insurers Save Prescription Drug Costs
The new subsidiary will build on Civica's innovative model that has made some physician-administered generic drugs available at more than 1,200 hospitals across the country, according to Maureen Sullivan, chief strategy and innovation officer at the Blue Cross and Blue Shield Association. "We are solving a different business problem, but it is still showing how different private-sector stakeholders can come together to deliver lower-cost prescription drugs," Sullivan said. (Cohrs, 1/22)
Stat:
Civica Rx Teams With Blue Cross Blue Shield To Widen Market For Generics
The goal is to provide a salve to rising prices and shortages caused by either manufacturing disruptions or a dwindling number of suppliers, according to Martin VanTrieste, who runs Civica Rx. The same concerns prompted the nonprofit to initially strike deals with generic companies to produce 18 injectable medicines for hospitals. With that success, Civica Rx is now turning to a new market. (Silverman, 1/23)
Los Angeles Times:
Health Insurers Take On Big Pharma, Plan To Manufacture Their Own Drugs
The move — the latest salvo in the escalating battle to control drug prices — highlights the failure of the Trump administration and Congress to deliver relief for millions of Americans struggling to afford their medications. The announcement also comes as the state of California is exploring its own drug manufacturing plan. Neither effort would affect the high price of branded pharmaceuticals, which is the largest driver of U.S. drug spending. (Levey, 1/22)
In other pharmaceutical news —
The Hill:
PhRMA Spent Record-High $29 Million On Lobbying In 2019
The powerful trade group representing the prescription drug industry spent a record-high $29 million lobbying Congress in 2019, according to disclosure reports released Tuesday. That is a 5 percent increase over what the Pharmaceutical Research and Manufacturers of America (PhRMA) spent in 2018, marking the most it has spent on lobbying in a single year. Despite anger from lawmakers and the Trump administration over rising prescription drug costs, the industry ended 2019 mostly unscathed as Congress failed to pass any legislation to lower prices for consumers. (Hellmann, 1/22)
