Blue Shield California ditches CVS for Amazon and Mark Cuban’s drug company

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Blue Shield said that its new pharmacy care model is intended “to fix problems in today’s broken prescription drug system.”

“The current pharmacy system is extremely expensive, enormously complex, completely opaque, and designed to maximize the profit of participants instead of the quality, convenience and cost-effectiveness for consumers,” Paul Markovich, the insurer’s CEO, said in a statement. “That is why we are working with like-minded partners to create a completely new, more transparent system that gets the right drugs to the right people at the right time at a substantially lower cost.

Under the plan, Amazon Pharmacy will provide free delivery of medications to members, while Mark Cuban Cost Plus Drug Company will establish a pricing model that Blue Shield says will be “simple, transparent and more affordable.” Two other companies will provide additional services. CVS Caremark will continue to work with Blue Shield, providing specialty pharmacy services for members with complex conditions.

In a statement, CVS Health said: “We look forward to providing care for Blue Shield of California’s members who require complex, specialty medications – as we have for nearly two decades.”’ stock tumbled around 9% in morning trading. It had already fallen more than 21% this year before Thursday’s decline due to fears of competition from Amazon and other low-cost pharmaceutical companies, as well as a decline in consumer discretionary spending.

 

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