BCBS companies form collective to tackle medication affordability
Synergie aims to significantly reduce medical benefit drug costs by establishing a more efficient contracting model.
Photo: Jasmin Merdan/Getty Images
A group of Blue Cross Blue Shield-affiliated companies have founded a new medication contracting organization called Synergie Medication Collective, which is designed to serve both Blues and select independent health plans.
Synergie is focused on improving affordability and access to costly medical benefit drugs – ones that are injected or infused by a healthcare professional in a clinical setting. These high-cost treatments include multi-million-dollar gene therapies and infusible cancer drugs, and represent a substantial portion of overall drug spend, with significant growth in future spend anticipated, according to the collective.
WHAT'S THE IMPACT?
Synergie aims to significantly reduce medical benefit drug costs by establishing a more efficient contracting model based on its collective reach and engagement with pharmaceutical manufacturers and other industry stakeholders. Its core philosophy, it said, is to prioritize partnership and transparency.
Jarrod Henshaw has been named Synergie's CEO. Henshaw has more than 20 years of experience working in the pharmaceutical supply chain in various senior leadership roles across the pharmacy industry and private equity. Blue Cross Blue Shield Association president and CEO Kim Keck will serve as Synergie's initial board chair.
"I have long believed that a different, more transparent approach to the relationships between industry stakeholders is necessary to create truly affordable and accessible medications for all patients who need them," said Henshaw.
Investors in Synergie include Blue Cross Blue Shield Association, Elevance Health, Evio Pharmacy Solutions, Prime Therapeutics and various independent health plans, including Blue Cross Blue Shield of Arizona, Arkansas Blue Cross Blue Shield, CareFirst BlueCross BlueShield, Blue Cross of Idaho, Blue Cross Blue Shield of Kansas City, Premera Blue Cross, Blue Cross Blue Shield of South Carolina, Blue Cross Blue Shield of Vermont and Wellmark Blue Cross Blue Shield.
THE LARGER TREND
Medical benefit drugs such as gene therapies are likely contributing to cost growth in healthcare, exemplified in a 2022 Mercer survey finding that headwinds against sustainable cost growth include higher utilization as people catch up on missed care, the impact of long COVID-19, and new high-cost gene and cellular therapies that point to faster cost growth.
ON THE RECORD
"The costs of medications continue to rise and are unsustainable, especially when it comes to medicines that treat rare and complex diseases," said Kim Keck, BCBSA president and CEO. "We're proud to help launch Synergie to tackle medication affordability and access. We believe there is a better way to do business – and this first-of-its-kind approach will have a positive impact for millions of people across the United States."
Twitter: @JELagasse
Email the writer: Jeff.Lagasse@himssmedia.com
