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BlueCross BlueShield of Western New York Announces Partnership with Civica Rx to Combat Rising Costs of Generic Medications 

18 BCBS Plans to Invest $55M to Create a Subsidiary to Bring Lower-Cost, Generic Medications to Individuals and Families by 2022

January 23, 2020

Buffalo, N.Y. - BlueCross BlueShield of Western New York, in partnership with 18 independent and locally-operated Blue Cross and Blue Shield (BCBS) companies throughout the country and the Blue Cross Blue Shield Association (BCBSA), announced a partnership with nonprofit generic drug company, Civica RX, to create a subsidiary dedicated to lowering the cost of select generic drugs.

The bold new $55 million partnership was formed in response to the impact of high drug costs on the health of Americans and will result in meaningful savings for individuals and families, with the first generic medications becoming available by 2022.

“This new partnership reflects BlueCross BlueShield’s commitment to lowering health care costs, improving access to much-needed medications and most importantly enhancing the health of our community,” said David W. Anderson, President and CEO, BlueCross BlueShield of Western New York. “It’s an innovative solution that will help shape the future of health care for BlueCross BlueShield members across the country, including the nearly one million members we proudly serve in Western New York.”

BCBSA and BCBS plans’ capital commitment will bring select high-cost generic drugs to market for consumers.

The subsidiary will acquire and develop Abbreviated New Drug Applications (ANDAs) for select generic drugs and partner with Civica and other manufacturers to bring more affordable generic drugs to local markets in exchange for aggregated volume and multiyear purchasing commitments. Initially, several generic medications identified as having high potential for savings will be prioritized by the partnership and will evolve into a platform that can be used to enhance competition for additional generic drugs.

“Serving patients is our privilege and our responsibility—one that we are proud to share with BCBS companies who are committed to tackling one of the most important health care challenges of our time,” Martin VanTrieste, Civica president and CEO said. “Numerous studies confirm that medication costs can dictate whether individuals fill or ration their generic prescriptions. Together with BCBS companies, we are taking action to put patients first.”

BCBS companies currently participating in the Civica partnership include:

Blue Cross and Blue Shield of Alabama, Arkansas Blue Cross and Blue Shield, Blue Shield of California, Capital BlueCross, CareFirst BlueCross BlueShield*, Excellus BlueCross BlueShield*, Blue Cross and Blue Shield of Hawaii, Highmark Blue Cross Blue Shield, Horizon Blue Cross Blue Shield of New Jersey, Blue Cross of Idaho, Independence Blue Cross, Blue Cross and Blue Shield of Kansas, Blue Cross and Blue Shield of Kansas City, Blue Cross Blue Shield of Michigan, BlueCross BlueShield of Western New York and BlueShield of Northeastern New York, Blue Cross & Blue Shield of Rhode Island, BlueCross BlueShield of South Carolina, Blue Cross and Blue Shield of Vermont and the Blue Cross Blue Shield Association’s Federal Employee Program.

*Pending state regulatory approval.

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