Jan. 23 (UPI) -- A group of insurance providers has pledged to spend $55 million to create a new non-profit company to manufacture generic prescription drugs at lower costs.
The Blue Cross Blue Shield Association, comprised of 18 independently operated providers, said it will circumvent pharmaceutical companies to make certain drugs as a means to improve access to healthcare for all Americans.
The group said its goal is to make drugs that lack competition in the market, which is one of the key elements that determines the cost of any medication. It will partner with Civica Rx in the project.
"Everyone should have access to healthcare, no matter who they are or where they live," BCBSA President Scott Serota said in a statement Wednesday. "We will push toward the vital objective of providing greater access to much-needed medications.
"We hope others will join us to achieve the change Americans want to see."
Civica Rx, which already provides medications to hospitals, was founded in 2018 by advocates and healthcare groups to lower drug prices.
The first drugs from the new venture are expected on the market in early 2022.