A group of major insurers said they would invest 55 million to create cheaper versions of expensive generic drugs. This is another sign that the pharmaceutical industry pricing is angering the general population. Even an assumed ally, like insurance companies, are starting to stand against it and want to lower generic drug prices.
Major Insurers are Trying to Lower Generic Drug Prices
The decision was made by the Blue Cross Blue Shield Association and 18 of its member organizations. All of which covers around 40 million people. They also partnered with Civica Rx, a nonprofit already selling drugs used in hospitals to health systems around the nation.
While not announcing the specific drugs that would be targeted due to not wanting to alert potential rivals, they said they want to start with seven to ten products. Some of these projects could be out as early as 2022.
While generic drugs are usually less expensive than brand names, they can get costly when there is no other competition. No competition means that the price can go up and people have no other choice but to buy it.
Federal prosecutors have been investigating price-fixing schemes done by pharmaceutical companies. The only problem is that the process to catch and punish these companies is long.
CivicaRx says they can get lower prices because they can guarantee companies a market, so whatever they don’t make themselves, they are hoping to get lower prices for.
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