Abarca Health and LucyRx have announced a new partnership aimed at establishing an independent pharmacy benefits manager (PBM) to service commercial and governmental clients, impacting over 9 million members across the United States.
Based in San Juan, Puerto Rico, Abarca Health primarily serves large health plans as an independent PBM, while LucyRx, headquartered in Bethesda, Maryland, focuses on employers and third-party administrators. David Blair, CEO of LucyRx, emphasized their targeted approach: “We have been focusing on employer groups, TPAs, unions, and some local governments, particularly small organizations, without involving retirees. Abarca, on the other hand, has invested significantly in technology for some of the largest health plans in the country. The companies complement each other well.”
The partnership will operate under a new parent company called Healthcare Revolution Partners, with Blair remaining CEO of LucyRx and Jason Borschow continuing as CEO of Abarca Health.
The financial terms of this agreement have not been disclosed, and the transaction is pending regulatory approvals, expected to close by the third quarter of 2026.
Borschow noted that the merger comes at a crucial time as traditional PBMs face increasing scrutiny at both the federal and state levels. This includes the largest PBMs, such as CVS Caremark, Optum Rx, and Express Scripts, which are owned by major insurance companies.
The recent passage of the PBM reforms through the Consolidated Appropriations Act of 2026 prohibits the bundling of PBM compensation with drug pricing in Medicare Part D and mandates more transparent reporting standards for plan sponsors. Additionally, the Department of Labor has proposed rules targeting PBMs, with states like Tennessee also implementing regulations.
“We see all of this as a favorable disruption for companies like us,” said Borschow. “The traditional PBM model is no longer viable, and this space should be occupied by firms like Abarca and LucyRx. Given our complementary operations and aligned vision, combining our efforts into a competitive enterprise made sense at this moment.”
Looking ahead, Blair expresses hope that a new ‘Big Three’ will emerge in the PBM industry focused on independence overt the next five years, with Healthcare Revolution Partners among them. Borschow anticipates a shift in the perception of PBMs, stating, “Currently, PBM is not viewed positively in the sector. This industry has lost its way and its credibility. Our hope is that, in five years, discussions about our PBM approach will evoke trust in the prescription ecosystem, built together.”
Photo: Nespix, Getty Images
