The news: Blue Shield of California considerably reduced the price it will pay for an FDA-approved biosimilar of AbbVie’s Humira by negotiating directly with its manufacturer.

• Humira, a medication for certain autoimmune conditions like rheumatoid arthritis and ulcerative colitis, has a net price of $2,100 per monthly dose.
• Blue Shield of California will purchase drugmaker Fresenius Kabi’s Humira biosimilar at a net price of $525 per monthly dose, which will be available to most of its commercial members at a $0 copay starting on January 1, 2025.

Why it matters: The negotiations mark the first time a health insurer has used such an approach to bring a Humira biosimilar to market, circumventing pharmacy benefit managers (PBMs) and the excessive markups tied to the traditional PBM model in the process.