Navitus and Costco Pharmacy Partner to Transform Drug Pricing Transparency with Cost-Plus Model Launching in 2026
In a bold move aimed at reshaping the landscape of prescription drug pricing in the United States, Navitus Health Solutions, the nation’s first and largest fully transparent, pass-through pharmacy benefit manager (PBM), has announced a strategic partnership with Costco Pharmacy to bring cost-plus pricing to the retail and mail-order pharmacy space. The new model will be implemented across all lines of business for Navitus clients beginning January 1, 2026.
This collaboration is designed to empower clients and members with unprecedented visibility into the actual costs of prescription medications—reflecting a shared commitment by both Navitus and Costco to transparency, value, and cost accountability in the often opaque world of pharmacy benefit management.
What the Cost-Plus Model Means for Navitus Clients
The Costco cost-plus pricing model offers a straightforward and highly competitive pricing structure: the cost of each prescription will be calculated based on what Costco pays to acquire the medication, plus a modest, fixed markup and a service fee to cover pharmacy operations. This clear, auditable pricing approach eliminates hidden markups and aims to drive down costs for employers, health plans, and members alike.
Because Navitus operates as a 100% pass-through PBM, all cost savings and manufacturer discounts are passed directly to the client without margin or spread pricing. This ensures that the savings generated by Costco’s bulk purchasing power are fully realized by the end payer—a sharp departure from traditional PBM models where pricing and rebate structures are often opaque.
Additionally, Navitus members living within one hour of a Costco Pharmacy location will be able to benefit from same-day prescription delivery at no cost, thanks to a fulfillment partnership with Instacart. This last-mile service adds a layer of convenience for patients, reinforcing the alignment between affordability, access, and transparency.
Advancing a Transparent Vision in Pharmacy Benefits
Since its inception, Navitus has sought to disrupt conventional PBM practices by introducing a model that prioritizes transparency, accountability, and client empowerment. The company’s pass-through pricing structure ensures that clients pay the true net cost of medications, without markups or hidden incentives that often inflate drug spending.
“From day one, Navitus has delivered a clear view to drug costs, rebates, and fees as a transparent PBM,” said Diana Gibson Pace, Chief Growth Officer at Navitus Health Solutions. “With our specialty pharmacy, Lumicera, we have led the industry by helping clients understand exactly how much their plan pays for specialty medications. Now, with the Costco cost-plus pricing model, Navitus clients will have access to the same level of clarity for the cost of brand and generic drugs at Costco’s retail and mail-order pharmacy locations.”
This partnership with Costco represents a meaningful extension of Navitus’ long-standing commitment to transparency in pharmacy benefit administration. By incorporating Costco’s cost-plus pricing methodology, Navitus clients will gain access to a pharmacy experience where pricing is predictable, easy to audit, and aligned with the best interests of the payer and patient.
Costco Recognized as a NavitusClear Partner
As part of the announcement, Navitus also revealed that Costco has earned the NavitusClear designation, a recognition reserved for organizations that meet Navitus’ highest standards for transparency, pricing clarity, and member value. The NavitusClear label signals a deep alignment between the PBM and its partners on critical issues such as drug cost transparency, patient affordability, and fair contracting practices.
Other recipients of the NavitusClear designation include:
- Lumicera Health Services, Navitus’ in-house specialty pharmacy, which operates with a fully transparent cost model for high-cost and complex medications.
- CivicaScript, a not-for-profit limited liability company dedicated to expanding access to affordable generic medicines for patients across the U.S.
These designations reflect Navitus’ broader strategic effort to cultivate a network of partners committed to financial integrity and transparent pharmaceutical pricing.
“Costco has long supported the Navitus PBM model and its commitment to transparency,” said Richard Stephens, Senior Vice President of Costco Pharmacy. “We are proud to be their first network pharmacy partner to deliver to their clients highly competitive, fully auditable drug costs of prescription medications. We feel this level of transparency is a positive step to give payers a tool to effectively manage drug spend.”
Costco’s involvement adds credibility and scale to the effort, given the retailer’s reputation for value-based purchasing and consumer-centric pricing across its various product categories, including pharmacy. The wholesale giant has built a trusted brand by offering consistently low prices and operational efficiency, values that resonate strongly with Navitus’ approach to PBM services.
Reinforcing a Growing Movement for PBM Reform
The Navitus-Costco partnership also arrives at a pivotal time in the healthcare policy landscape. PBMs have come under increasing scrutiny from lawmakers, employers, and consumer advocacy groups for their role in driving up drug costs through opaque rebate structures, spread pricing, and lack of accountability.
Policymakers at both the federal and state levels have introduced a wave of legislative and regulatory proposals targeting PBM practices, including greater disclosure of rebates and mandates for pass-through pricing. In this environment, Navitus’ model has been cited as an example of what responsible PBM practices can look like.
With the launch of this initiative, Navitus and Costco are signaling to the healthcare market that pricing clarity is not only possible but scalable. The program is expected to appeal to public and private payers alike—employers, unions, government plans, and third-party administrators—who are seeking greater visibility and control over their pharmacy spend.
Expanding the Scope of Patient-Centered PBM Services
Beyond cost savings, the program is designed to enhance the overall member experience. The inclusion of same-day delivery through Instacart reflects a growing industry trend of integrating logistics and digital services to improve medication adherence and member satisfaction.
Moreover, the Costco model may serve as a blueprint for expanding cost-plus pricing into other aspects of pharmacy benefit design, including biosimilars, high-cost generics, and even specialty medications in the future.
By creating a pricing structure that is easily understood, rational, and free of conflicts of interest, the Navitus-Costco partnership paves the way for a broader shift toward value-based pharmacy care.
A 2026 Launch with Long-Term Implications
The cost-plus pricing model will officially be available to all Navitus clients starting January 1, 2026, across retail and mail-order settings. In the months leading up to the rollout, will work closely with employer groups, health plans, and other stakeholders to ensure a smooth onboarding process and to educate clients about the pricing model, audit procedures, and delivery options.
About Navitus Health Solutions is a pharmacy benefit manager (PBM) committed to transforming the cost and delivery of pharmacy care through a 100% pass-through, fully transparent model. serves a wide range of clients, including employers, unions, health plans, and government entities, ensuring that every dollar spent on pharmacy benefits is used efficiently and ethically.
About Costco Pharmacy
Costco operates one of the most trusted pharmacy chains in the U.S., known for its competitive pricing, bulk purchasing power, and member-focused services. Costco Pharmacy offers mail-order and in-store services, helping members access affordable medications with the convenience and quality assurance associated with the Costco brand.
