A coalition of the nation’s top insurance companies have pledged $55 million to fund the development of new generic drugs in a bid to drag down prices by increasing competition, the New York Times reports.
According to the report, the group, steered by the Blue Cross Blue Shield Association, is partnering with Civica Rx to target brand drugs that don’t face much competition.
“This 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,” Dan Liljenquist, the chairman of Civica’s board, tells the New York Times. “And we intend to compete in those markets.”
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