Blue Shield of California dropped CVS as its PBM — why it could save them $500 million

Published 5 Min Read

M. Suhail from AdobeStock

Many employers have voiced criticisms of pharmacy benefit managers, or PBMs, questioning why prescription costs are getting higher with no relief in sight — and it looks like insurance carriers have the same question. 

Blue Shield of California dropped CVS as their PBM in August in the hopes of cutting down prescription costs by $500 million a year. Through Blue Shield’s new initiative, “Pharmacy Care Reimagined,” the carrier will work with multiple organizations — including Amazon Pharmacy, Abarca, Mark Cuban Cost Plus Drug Company, Prime Therapeutics and CVS Caremark — to cover the administration, navigation and delivery of prescription drugs. 

Deanna Cuadra
Senior Reporter

Deanna Cuadra is a senior reporter at Employee Benefit News. Her work covers healthcare, U.S. policy and reform, challenges faced by women and parents in the workplace and innovation in work culture … Read full bio


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