Indianapolis-based Anthem Inc. (NYSE: ANTM) is launching its own pharmacy benefits management company. IngenioRx will begin serving customers in 2020 following the expiration of Anthem’s current PBM contract.
IngenioRx will serve customers of Anthem-affiliated health plans and non-Anthem customers. Anthem Chief Executive Officer Joe Swedish says the company believes it can strengthen the value offered to the marketplace with an improved PBM model.
"Through the process of evaluating many PBM options in preparation for the expiration of our current contract, we determined that our scale and experience best position us to deliver an innovative solution, and the launch of IngenioRx will allow us to break through what is now a complex and fragmented landscape," Swedish said in a news release. "It also positions Anthem to take advantage of a unique opportunity to grow and diversify our business within our existing footprint as well as nationally."
A pharmacy benefits manager is a third-party administrator of prescription drug programs. According to the American Pharmacists Association, "PBMs are primarily responsible for developing and maintaining the formulary, contracting with pharmacies, negotiating discounts and rebates with drug manufacturers, and processing and paying prescription drug claims."
Anthem has also signed a five-year agreement with CVS Health Corp. (NYSE: CVS), which will begin January 1, 2020. Among the services provided by CVS, the pharmacy chain will provide prescription fulfillment and claims processing.
Anthem says it is working to ensure continuity of coverage for customers as the transition to IngenioRx continues. The company says, until the transition begins, members will continue to use their benefits as they do today.