Navitus, a transparent pharmacy benefit manager (PBM), announced that its clients will gain access to cost-plus prescription pricing through Costco Pharmacy for retail and mail order prescriptions, with implementation set for January 1, 2026.
Under this new model, Navitus clients will see drug costs based on what Costco pays to acquire a drug, plus a fixed markup and a fee for pharmacy services. This approach is designed to provide full transparency into drug pricing, aligning with Navitus’s 100% pass-through PBM model, which allows clients to benefit directly from Costco’s purchasing power. Additionally, Navitus members residing within an hour of a Costco Pharmacy will have access to no-cost same-day prescription delivery via Instacart.
Diana Gibson Pace, Chief Growth Officer at Navitus Health Solutions, stated, “From day one, Navitus has delivered a clear view to drug costs, rebates and fees as a transparent PBM. With our specialty pharmacy, Lumicera, we have led the industry by helping clients understand exactly how much their plan pays for specialty medications. Now, with the Costco cost plus pricing model, Navitus clients will have access to the same level of clarity to the cost of brand and generic drugs at Costco retail and mail order pharmacy locations.”
Costco’s cost-plus pricing model reflects a shared commitment to transparency and accountability in drug pricing for Navitus clients. In recognition of this alignment, Navitus has designated Costco as a NavitusClear partner. This designation is reserved for organizations that meet Navitus’s standards for clarity and value. Other organizations that have received the NavitusClear designation include Lumicera Health Solutions, Navitus’ specialty pharmacy, and CivicaScript, a non-profit limited liability company focused on expanding access to affordable generic medications.
Richard Stephens, Senior Vice President at Costco Pharmacy, commented, “Costco has long supported the Navitus PBM model and its commitment to transparency. 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 describes itself as the nation’s first transparent, pass-through pharmacy benefit manager. The company states its model aims to bring clarity to drug pricing and reduce costs in the drug supply chain by passing complete savings, including rebates and discounts, directly to clients. Navitus Health Solutions, LLC, established over 20 years ago, owns Navitus and delivers services through portfolio brands including Navitus, Lumicera, and Archimedes. Owned by SSM Health and Costco, Navitus Health Solutions serves over 18 million lives across 800 clients, including employers, unions, government plans, payors, and health systems.
