Nonprofit health insurer Blue Shield of California is breaking away from its pharmacy benefit manager CVS Caremark and launching a new model that aims to increase transparency around prescription drug costs, it announced on Thursday.
The model follows years of talks around lowering drug prices for patients, particularly in California, one of the first states to pass prescription drug pricing transparency legislation. Blue Shield’s team devised a plan on a whiteboard to lower its drug spending around the end of 2019 and put out its official proposal in 2022.
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