Indianapolis, Indiana-based Anthem will launch its own pharmacy benefit manager called IngenioRx, the insurer announced October 18.
Anthem has signed a five-year contract with CVS Health to establish the PBM, which will begin offering services in 2020.
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The insurer said IngenioRx will save it an estimated $4 billion annually, according to Reuters.
“Through the process of evaluating many PBM options in preparation for the expiration of our current contract, we determined that our scale and experience will 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,” Anthem CEO Joseph Swedish said in a statement. “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.”
The agreement with CVS Health goes into effect on January 1, 2020, right after Anthem’s contract with Express Scripts expires at the end of 2019.
The deal expiration comes after a lengthy battle between the two entities. In 2016, Anthem sued Express Scripts, claiming it overcharged the insurer by $3 billion annually. The PBM denied the allegations and countersued.
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Regarding Anthem’s latest announcement of IngenioRx, Express Scripts had this to say in a statement:
While it is disappointing that Anthem has decided to work with another PBM, we know that no other PBM will offer Anthem the combination of savings, member and client stability and clinical expertise that Express Scripts represents. Since 2009, Express Scripts has proudly served Anthem members and clients. Express Scripts will continue to serve Anthem and its members for the remainder of the contract term which runs through December 31, 2019, and through any additional transition period that may follow. We are committed to working together with Anthem to facilitate a smooth transition to the new PBM provider.
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