We can and we will lower prescription drug costs
By Scott P. Serota, Martin VanTrieste and Daniel R. Liljenquist
Americans are paying too much for prescription drugs. Even generic prescriptions can sometimes be too costly for patients to afford. We can do better. We must do better. And starting today, we will do better.
Today, generic medications account for 90% of all prescriptions. Numerous studies confirm that medication costs can dictate whether individuals fill or ration their generic prescriptions. To ensure the affordability of select high-cost generic medications, the Blue Cross Blue Shield Association, 18 Blue Cross and Blue Shield companies (BCBS) and Civica Rx are partnering to form a new subsidiary to reduce the cost of expensive generic medications for consumers.
BCBSA and BCBS companies have committed $55 million to help establish a subsidiary of Civica Rx that will deliver meaningful savings to consumers. We welcome the partnership of other health plans, employers, retail partners and health care innovators who share our belief that patients should come first.
Civica Rx was founded in 2018 as a nonprofit public asset to do what is in the best interest of patients by making quality medications available and affordable. It was formed by three national philanthropies and numerous health systems that now represent over 1,200 U.S. hospitals and 30% of all licensed hospital beds in the country.
With decades of experience providing health insurance to members in every ZIP code across the country, BCBS companies now serve one in three Americans and champion quality and affordability through value-based care models that put patients at the center of care.
By joining forces, BCBS companies and Civica Rx are uniting the experience of the brand that invented health insurance 90 years ago with a nonprofit mission to make quality generic medicines accessible and affordable to everyone.
Expanding the mission beyond the hospital setting
The new subsidiary will expand on success Civica Rx has already seen in its efforts to reduce chronic generic drug shortages in hospitals. Its initial focus has been on supplying essential sterile injectable medicines that have been in short supply in hospitals across the country. Twenty of these shortage medications will be in production by the end of January and over 100 generic medications are anticipated to be in production for use in hospitals in five years. Together, Civica Rx and BCBS companies are harnessing their collective experience to lower generic drug costs.
BCBS and Civica Rx will advance the mission to make quality generic medications affordable by:
-Ensuring patients and their needs come first, and that cost savings are passed along to consumers
-Promoting greater competition
-Including all interested pharmacies, health plans, employers, retailers, wholesalers and other innovators who share our passion for affordable, quality medications
Success in our new partnership will mean savings for individuals and families. We expect initial generic medications to be available by early 2022, and anticipate hundreds of millions in savings generated from the partnership that will be passed along to consumers.
As more partners join our effort and competition prompts other manufacturers to lower prices in other drug market segments, these savings will increase.
Evolving from commitment to results
Here’s how our partnership will work: BCBSA, BCBS companies and other industry leaders will commit the capital to bring generic drugs to market for consumers and produce them at discounts relative to current and forecasted market prices in exchange for multiyear purchasing commitments. The subsidiary will acquire and develop Abbreviated New Drug Applications (ANDAs) for select generic drugs and partner with Civica Rx and manufacturing partners to bring more affordable generic drugs to uncompetitive markets in exchange for aggregated volume and multiyear purchasing commitments. Seven to 10 generic medications identified as having high potential for savings will be prioritized by the partnership and will evolve into a platform that can be used to enhance competition for additional generic drugs.
Join us
There is ample opportunity for others to collaborate and address some of today’s most pressing healthcare challenges, including high generic prescription drug costs. By joining forces, BCBS companies and Civica Rx have the combined experience, know-how and commitment to begin to provide solutions to a problem that impacts all of us.
We call on and welcome like-minded partners to join us as we create a health care solution that truly puts patients first. We believe it’s our responsibility—and our privilege—to build a stronger, more sustainable health care future. And we believe that future starts today.
To learn more or to find out how to partner with us, visit bcbs.com/Civica-Rx
Scott P. Serota is president and CEO of the Blue Cross Blue Shield Association, a national federation of 36 independent, community-based and locally operated Blue Cross and Blue Shield companies that collectively provide health care coverage for one in three Americans.
Martin VanTrieste is president and CEO of Civica Rx, a nonprofit enterprise created by hospital systems and philanthropies to make quality generic medications available and affordable by reducing drug shortages and eliminating high price spikes for essential medications.
Daniel R. Liljenquist is SVP and chief strategy officer of Intermountain Healthcare and chairman of the board, Civica Rx.
This content is paid for by an advertiser and published by WP BrandStudio. The Washington Post newsroom was not involved in the creation of this content. Learn more about WP BrandStudio.
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