The Blue Cross Blue Shield Association (BCBSA), eighteen local Blue Cross Blue Shield (BCBS) companies, and nonprofit Civica Rx have joined forces to create a Civica subsidiary dedicated to lowering the cost of generic drugs.

With $55 million in funding from BCBSA and the local BCBS companies, the subsidiary will acquire and develop Abbreviated New Drug Applications (ANDAs) for select generic drugs and will work with Civica and manufacturers to provide more affordable medications in exchange for aggregated volume and multiyear purchasing commitments. The partnership initially will prioritize several generic drugs identified as having great potential to generate savings for individuals and families, with the first medications expected to become available by early 2022.

Established in 2018 with commitments of $10 million each from the Laura and John Arnold Foundation, the Peterson Center on Healthcare, and the Gary and Mary West Foundation, Civica Rx partners with hospitals and healthcare systems to address the chronic shortage and high pricing of critical generic medications.

"Civica is already bringing value — in quality, supply, and price — to the in-patient hospital market and with BCBS will expand that mission to reach individuals and families buying generic prescriptions in hospitals and pharmacies," said Civica board chair Dan Liljenquist. "Combining Civica’s mission with the commitment BCBS companies show to their members places us in a position to make a significant impact on lowering drug costs."