Abarca and LucyRx – two privately-held independent pharmacy benefit management companies — have agreed to merge as lawmakers, regulators and the public at large seek better prices on their prescription drugs. The combination announced Wednesday, June 17, 2026 of Abarca and LucyRx will create a pharmacy benefit management business that will serve more than 9 million customers across the U.S. In this photo, Abarca chief executive Jason Borschow speaks on the “future of pharmacy panel” Wednesday, December 4, 2024 at the annual Forbes Healthcare Summit at NYU Langone Health in New York.
Jamel Toppin
Abarca Health and LucyRx, two privately owned pharmacy benefit management companies, have announced a merger aimed at providing an alternative to the nation’s largest PBMs in response to public calls for more affordable prescription drugs.
This merger will form a pharmacy benefit management company serving over 9 million members across the United States. The companies stated on Wednesday that this move is intended to create a modern, independent pharmacy benefit manager capable of effectively serving clients of all sizes in both the commercial and government sectors.
The merger will position the combined entity among the top 10 PBMs by prescription volume, although it will remain significantly smaller than the three major PBMs that control 80% of the U.S. market: CVS Health’s Caremark, Cigna’s Express Scripts, and UnitedHealth Group’s OptumRx.
LucyRx CEO David Blair commented, “The market today doesn’t have a lot of choice. Now, we’re providing the market a clear alternative to the traditional PBM model.”
Executives from Abarca and LucyRx believe the merger will result in a stronger business capable of serving both commercial and government sectors, while introducing more competition through increased transparency, as they are not tied to larger companies that own health insurers or pharmacies.
Abarca CEO Jason Borschow highlighted the conflicts of interest present in the three largest PBMs, describing them as vertically integrated.
Pharmacy benefit managers act as intermediaries between insurers, pharmacies, and drug manufacturers, negotiating drug prices and managing prescription benefits. However, they have recently faced heightened scrutiny, with regulatory bodies across the U.S. examining PBM business practices and pushing for greater transparency. The three largest PBMs, in particular, have been the focus of a Federal Trade Commission inquiry into alleged anticompetitive behavior that purportedly inflated drug prices. The companies involved have denied these allegations.
With pharmacy costs rising rapidly, both for employers and workers, Abarca and LucyRx emphasized the timing of their merger in a joint statement. They noted the PBM market is at a critical juncture due to regulatory changes, high-cost specialty drugs, and clients demanding more flexible and accountable PBM relationships.
Once the merger is finalized, the combined entity will operate in all 50 states with complementary operations and no overlap. LucyRx currently manages pharmacy benefits for over 1.6 million members across 4,000 clients, including mid-sized employers and unions, while Abarca serves about 7.5 million members through health plans and government programs.
Based in San Juan, Puerto Rico, Abarca, and Bethesda, Maryland-based LucyRx will maintain their brands and operate as subsidiaries of Healthcare Revolution Partners after the deal closes in the third quarter of this year, subject to regulatory approvals. The financial terms of the transaction remain undisclosed.
Blair stated, “Leveraging our combined scale, technology, and track record, we will accelerate the healthcare revolution Abarca started more than 20 years ago. Together, we will deliver a trusted operating foundation, tailored customer experiences powered by best-in-class technology, and total-cost-of-care savings anchored in putting patients first.”
Blair and Borschow will retain their roles as CEOs of their respective companies and will become co-chairs of Healthcare Revolution Partners once the merger is complete.
Borschow expressed enthusiasm about the merger: “LucyRx shares our vision of making healthcare more seamless and personalized for everyone.” He added that they plan to leverage LucyRx’s clinical capabilities and expertise to enhance service offerings and explore new market segments.
Abarca gained attention two years ago when it partnered with Blue Shield of California and Amazon Pharmacy for a drug benefit venture. This initiative, called the “Pharmacy Care Reimagined Initiative,” officially launched last year. When announced in August 2024, it caused the stocks of major PBM owners to plunge as Blue Shield dropped CVS Health’s Caremark, prompting declines in Cigna and UnitedHealth Group’s stock prices as well.
