Blue Shield of California Looks To Cut Reliance on CVS, Taps Amazon

August 18, 2023

Blue Shield of California is shifting away from most of CVS Health’s pharmacy benefit management (PBM) services and is partnering with Amazon, Mark Cuban’s Cost Plus Drug Company, and others to reduce drug costs for its insurance plan members. While Blue Shield will still use CVS Caremark for managing specialty drugs, it plans to save $500 million annually in drug costs by working with multiple partners for PBM services. This decision comes amid rising scrutiny of PBMs’ role in healthcare costs and concerns over CVS’s reluctance to cover a cheaper version of Johnson & Johnson’s cancer drug, prompting a shift in strategy for Blue Shield.

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