Blue Shield of California announced a drastic cut to the price it will pay for an FDA-approved biosimilar of blockbuster drug Humira—purchasing the medicine at a net price of $525 per monthly dose, compared to the reported net monthly price of $2,100 for Humira.

By collaborating with drug manufacturer Fresenius Kabi, an operating company of Fresenius, and Evio Pharmacy Solutions, which facilitated the deal, Blue Shield can reduce the excessive markups often found in a traditional pharmacy benefit manager model and provide its members with better access to biosimilar medications.

Biosimilar drugs are FDA-approved medications that provides the same clinical effectiveness as a brand-name version—at a significantly lower, more transparent cost. Starting on January 1, 2025, most Blue Shield commercial members using the biosimilar option will pay $0 out of pocket. This collaboration will bring drug spending down while adherence for the medication is expected to go up.

“We will no longer take part in a pharmacy system that is designed to maximize the profit of participants instead of the quality, convenience, and cost-effectiveness for consumers,” said Paul Markovich, CEO, Blue Shield of California. “Every employer, health plan and payer should be asking—and challenging—their pharmacy benefit managers to offer clinically effective and lower cost alternatives at a transparent price. This is why Blue Shield decided to rebuild our pharmacy care system—so we can get medications to the right people, at the right time, at the right price.”

Read more about the transformation work Blue Shield of California is undertaking to reform the drug supply ecosystem here.