Starting in January, Navitus Health Solutions members will see cost-plus pricing at Costco Pharmacy for select prescriptions.
The alternative pharmacy benefit manager (PBM) said the pricing shift will be available for retail and mail-order locations. This model will show, in total, what Costco pays to acquire a drug, a fixed markup and the fee for pharmacy services, a news release explained.
"From day one, Navitus has delivered a clear view to drug costs, rebates and fees as a transparent PBM," said Diana Gibson Pace, chief growth officer at Navitus, in a statement. She added that the company’s specialty pharmacy brand, Lumicera, helps clients see how much a health plan pays for specialty medications.
Navitus employs a 100% pass-through model. The company says its cost-plus model is transparent for plan sponsors and supports access for all types of medications.
Members that live less than an hour from a Costco Pharmacy location can also receive same-day prescription delivery through Instacart.
"Costco has long supported the Navitus PBM model and its commitment to transparency," said Richard Stephens, senior vice president of Costco Pharmacy. "We are proud to be their first network pharmacy partner to deliver to their clients highly competitive, fully auditable drug costs of prescription medications. We feel this level of transparency is a positive step to give payers a tool to effectively manage drug spend.”
Navitus is owned by nonprofit health system SSM Health and Costco Wholesale, managing Costco’s employees and dependents since 2019.
Earlier this year, Navitus announced it would end the EpiphanyRx brand, enveloping the old brand under Navitus. It had acquired the PBM in 2021.
The company also inked a partnership with GoodRx in 2023 and joined CivicaScript as a founding member in 2022.