“It was pretty clear as we looked at pharmacy-cost trends that where we were and where we were trying to go was just unsustainable,” Paul Markovich, CEO of Blue Shield of California explains to Bloomberg Intelligence. Markovich joins BI analyst Jonathan Palmer on this Vanguards of Health Care podcast episode to discuss the details of the company’s new prescription model, why it’s walking away from traditional pharmacy-benefit managers arrangements and how the insurer is going to generate $500 million in savings on over $4 billion in annual drug spending. Blue Shield’s work-around digital innovation, value-based care and the potential of GLP-1 drugs are also highlighted.

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