Express Scripts and Prime Therapeutics said Dec. 19 they are entering into a three-year collaboration to lower drug costs for their more than 100 million clients.
The collaboration between the two pharmacy benefit management companies will give each more leverage to negotiate drug prices, according to Forbes. It will enhance each company's pharmacy network and pharmaceutical manufacturer value, the companies wrote in a news release.
Prime, owned by 18 Blue Cross Blue Shield plans, provides services to more than 28 million people. Express Scripts, owned by Cigna, has more than 3,000 clients and 75 million customer relationships.
Both companies will continue to work independently with drugmakers, with Express Scripts handling negotiations for drugs on the pharmacy benefit, and each company separately managing certain relationships on the medical benefit and value-based contracting, the companies said.
The financial terms of the collaboration haven't been disclosed.
The deal could put pressure on drugmakers to lower their prices at a time when Congress is proposing several pieces of legislation aimed at making prescription drugs more affordable.
It also comes amid a trend of PBMs and large health insurers consolidating, according to Forbes. UnitedHealth Group, the country's largest health insurer, owns the PBM OptumRx, and Anthem, the country's second-largest health insurer, created its own PBM called IngenioRx.
"As healthcare costs continue to grow at an unsustainable pace, improving the value we deliver in healthcare is critical. This collaboration will improve outcomes while still maintaining flexibility and transparency to the clients we proudly serve," said Ken Paulus, president and CEO of Prime.
Read the full article here.
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