Navitus Health Solutions Introduces Cost-Plus Pricing at Costco Pharmacy

Navitus Health Solutions, an alternative pharmacy benefit manager (PBM), has announced a significant move towards drug price transparency in collaboration with Costco Pharmacy. Starting January 2026, Navitus members will have access to cost-plus pricing for select prescriptions at Costco Pharmacy locations, both for retail and mail-order services.

Transparent Pricing Model

The new pricing model aims to provide full visibility into drug costs, breaking down the total price into three components:

1. Costco's drug acquisition cost
2. A fixed markup
3. The fee for pharmacy services

Diana Gibson Pace, Chief Growth Officer at Navitus, emphasized the company's commitment to transparency, stating, "From day one, Navitus has delivered a clear view to drug costs, rebates and fees as a transparent PBM."

Expanded Services and Accessibility

In addition to the new pricing model, Navitus is enhancing accessibility for its members:

• Same-day prescription delivery through Instacart for members living within an hour of a Costco Pharmacy location
• Continued use of Navitus' specialty pharmacy brand, Lumicera, to provide visibility into specialty medication costs for health plans

Strategic Partnerships and Growth

Navitus' collaboration with Costco is part of a broader strategy to increase transparency and value in the pharmaceutical industry:

• Navitus is co-owned by nonprofit health system SSM Health and Costco Wholesale
• The company has managed Costco's employees and dependents since 2019
• Earlier partnerships include joining CivicaScript as a founding member in 2022 and collaborating with GoodRx in 2023

Richard Stephens, Senior Vice President of Costco Pharmacy, expressed support for the initiative, stating, "We are proud to be their first network pharmacy partner to deliver to their clients highly competitive, fully auditable drug costs of prescription medications."