Blue Shield of California's upcoming drug benefit initiative, in partnership with Amazon Pharmacy
Last year, Blue Shield of California discontinued using CVS Health Inc's
Instead, the nonprofit health plan said it would partner with a specialized company group. Amazon.com will manage at-home drug deliveries, Mark Cuban's Cost Plus Drug Company will facilitate access to affordable medications, and Abarca will handle drug claims processing.
In August 2023, Blue Shield of California unveiled a new pharmacy care model. The nonprofit health plan will work with organizations that aim to provide affordable and transparent pharmacy services for its 4.8 million members.
This initiative is part of Blue Shield's Pharmacy Care Reimagined program, which seeks to improve medication access, enhance price transparency, and lower costs.
Once fully implemented, the multi-year strategy is projected to save up to $500 million annually on drug expenses.
Prescription drug costs in the U.S. remain a growing concern. Over a third of American adults take three or more medications yearly, and the nation spent over $600 billion on prescriptions in 2021-an average of $1,500 per person.
The Forbes report adds that the move challenges the dominance of the three largest pharmacy benefits managers (PBMs), which operate with major health insurers, raising questions about how smaller competitors like Blue Shield's partners can compete effectively.
At the Forbes Healthcare Summit, executives from Abarca and Amazon Pharmacy emphasized that they plan to stay competitive with their rivals and ensure the satisfaction of customers of the Pharmacy Care Reimagined initiative.
While analysts question whether the venture can scale to rival established players, the report highlights the partnership's leaders remain optimistic about its potential to deliver value to customers.
By leveraging Amazon's logistics and Abarca's innovative approach, they aim to redefine medication management for millions of patients.
