Fed Up With Big Pharma’s rates, health insurance companies promise $55M for inexpensive generics

Market crashing–.

Blue Cross and Blue Shield business partner with Civica to make less expensive generics.


A pharmacy technician grabs a bottle of drugs off a shelf at the central pharmacy of Intermountain Heathcare on September 10, 2018 in Midvale, Utah. IHC along with other hospitals and philanthropies are launching a nonprofit generic drug company called

Enlarge/ A pharmacy technician grabs a bottle of drugs off a rack at the main pharmacy of Intermountain Heathcare on September 10, 2018 in Midvale, Utah. IHC along with other medical facilities and philanthropies are introducing a nonprofit generic drug company called “Civica Rx” to help in reducing cost and lacks of generic drugs.

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Fed up with the expensive cost on old, off-patent medications, 18 Blue Cross and Blue Guard companies are partnering with a nonprofit devoted to producing and offering economically priced generic drugs.

In 2018, various health care organizations banded together with 3 philanthropies to manufacture their own brand name of generic drugs, forming Civica and thwarting the generic industry. Their objective was to offer hospitals with injectable generic medications in constant materials at economical costs.

The health care organizations involved in Civica now represent over 1,200 health centers in 46 states. Last October, Civica provided its first drugs to a healthcare facility in Utah and is now producing and distributing several drugs.

With the new partnership with BCBS business, Civica will broaden out of simply medical facility medications. Specifically, the deal will develop a subsidiary that will either make drugs or partner with makers to offer more cost effectively priced generic variations of choose drugs in exchange for aggregate, multi-year purchasing dedications.

The partners were mum on which drugs they will pick but said that they will initially focus on ones “identified as having high capacity for cost savings” that presently have little competition. They also encouraged others, including “other health insurance, employers, retail partners, and health care innovators” to join their effort.

In an interview with The New York Times, Civica board chairman Dan Liljenquist said that the new venture “will not resolve all the issues of the world, however we do understand that 90 percent of prescriptions are generic, and there are certain parts of the generic markets that are not working like competitive markets should. And we plan to complete in those markets.”.

Recently, generic drug makers have been implicated of rate gouging and being involved in price-fixing schemes Furthermore, brand-name drug makers have been accused of offering faux-generic drugs— sometimes called “licensed” generics– in order to keep drug costs high and stymie competition.

Civica and the BCBS business aren’t the only ones looking to get around the generic market. California Gov. Gavin Newsom proposed previously this month having the state make its own brand name of generic drugs to minimize healthcare costs. Sen. Elizabeth Warren (D-Mass.) and Rep. Jan Schakowsky (D-Ill.) have proposed a comparable step at the federal level

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