With prescription costs soaring, Blue Shield of California last year dramatically overhauled how it purchased and supplied prescription drugs for its 4.8 million members.
The nonprofit insurer, which brings in $20 billion in annual revenue, replaced its existing pharmacy benefit manager (PBM) with healthcare upstarts including Amazon Pharmacy for drug delivery and Mark Cuban Cost Plus Drug Company to provide affordable drugs. CEO Paul Markovich says the effort will save the insurer $500 million per year once it’s fully implemented—while keeping patients’ own costs down.
