US insurers, sick of being gouged by Big Pharma, will develop cheap generics

The US health insurance industry resents being on the receiving end of surprise bills and price-gouging, so Blue Cross/Blue Shield are spending $55m to have the nonprofit Civica Rx tool up to make generics of off-patent drugs whose sole manufacturers are shkreliing the prices into the stratosphere.

Civica already supplies drugs to 1,200 hospitals.

Drugmakers hiked prices 1,000% in massive price-fixing scheme, states allegeIn an interview with The New York Times, Civica board chairman Dan Liljenquist said that the new venture will not solve all the problems of the world, but we do know that 90 percent of prescriptions are generic, and there are certain parts of the generic markets that are not functioning like competitive markets should. And we intend to compete in those markets.

Sick of Big Pharmas pricing, health insurers pledge $55M for cheap generics [Beth Mole/Ars Technica] Read the rest