Shares of CVS Health plunged 9% on Thursday after Blue Shield of California said it will drop the company's pharmacy benefit management services and instead partner with Mark Cuban's Cost Plus Drug Company and Amazon Pharmacy to save on drug costs for its nearly 5 million members.
Blue Shield will now work with five different companies to provide "convenient, transparent access to medications while lowering costs."
Blue Shield CEO Paul Markovich said the plan, which is scheduled to fully launch in 2025, could save the company up to $500 million annually.
Cuban's Cost Plus Drug Company will provide access to low-cost medications through retail pharmacies.
Blue Shield will retain CVS Caremark for its specialty pharmacy services, which provide specialized therapies and counseling to patients suffering from complex disorders.
Persons:
Mark Cuban's, Caremark, Paul Markovich, Michael DeAngelis, Centene
Organizations:
CVS Health, Drug Company, Amazon Pharmacy, UnitedHealth, CVS, Abarca, Blue, CNBC
Locations:
New York, California