Cobalt & Navion Forge Alliance to Combat Soaring Employer Drug Costs

EXETER, N.H. – January 20, 2026 – In a significant move to address the spiraling cost of prescription drugs for American businesses, third-party administrator (TPA) Cobalt Benefits Group has announced a strategic partnership with Navion, a national pharmacy benefit consulting firm. The collaboration aims to provide self-funded employers with more powerful tools to manage pharmacy spend, promising potential savings of up to 22% and bringing a new level of transparency to a notoriously complex market.

This alliance embeds Navion's specialized analytics, clinical oversight, and contract negotiation expertise directly into Cobalt's offerings, effectively creating a full-service solution for employers grappling with one of the fastest-growing components of their healthcare expenditures.

The Mounting Pressure on Employer Health Plans

For years, self-funded employers have been on the front lines of a battle against escalating healthcare costs, with pharmacy benefits representing a particularly volatile and challenging front. The landscape is fraught with obstacles: the high price of new specialty drugs, complex and often opaque contracts from Pharmacy Benefit Managers (PBMs), and a consolidated market that can leave employers with limited negotiating power.

Industry data consistently shows that specialty medications, while often life-changing for a small number of employees, can account for over 50% of a company's total drug spend. This, combined with the recent surge in demand for high-cost drugs like GLP-1 agonists for diabetes and weight management, has placed immense financial strain on employer-sponsored health plans. Many businesses lack the in-house expertise to dissect PBM contracts, challenge formulary decisions, or implement effective cost-containment strategies, leaving them vulnerable to unpredictable and ever-increasing expenses.

This environment has fueled a growing demand for more integrated and expert-driven solutions. Employers are increasingly seeking partners who can move beyond basic administration and provide strategic, data-backed guidance to navigate the pharmacy benefits maze.

A Strategic Alliance to Reinforce the Front Lines

Cobalt's partnership with Navion is a direct response to this market need. By designating Navion as its dedicated pharmacy benefit consultant, Cobalt aims to transform its role from a traditional TPA into a comprehensive benefits powerhouse. Cobalt, a family of TPA brands supporting over 250,000 members, is leveraging the partnership to enhance its value proposition for employers and the brokers who advise them.

"Our clients rely on us to deliver value and innovation," said Jim Brown, Chief Revenue Officer of Cobalt Benefits Group, in a statement. "Navion brings the depth of pharmacy expertise and cost-containment strategy that allows us to do just that. Together, we can offer our clients stronger contract terms, clinical oversight and programs that reduce spend—without disrupting members' experience."

The collaboration is the result of a successful pilot program that began in January 2025 and has since been expanded across Cobalt's entire client base. The model is built on deep integration, giving Cobalt's clients access to Navion’s full suite of resources, which includes clinical pharmacists, data analysts, and contract negotiators with decades of PBM industry experience.

Navion, which rebranded from AlignRx Consulting in 2025, has built a reputation for delivering significant client savings, with a track record of 20-40% cost reduction through its PBM procurement process and a 98% client retention rate. "Cobalt had the vision to bring a dedicated pharmacy expert to the table," noted Cheri Rambo, EVP of Business Development at Navion. "By embedding our analytics, contracting and clinical oversight into their model, they're helping brokers, benefit consultants and employers unlock savings and improve member care—while positioning Cobalt as a pharmacy powerhouse in the TPA market."

Unlocking Savings Through Clinical Innovation and Expertise

The promise of up to 22% savings is anchored in a multi-pronged strategy that combines aggressive contracting with sophisticated clinical management. The partnership provides employers with access to advanced cost-containment programs that address the market's most significant cost drivers.

One key area is the implementation of biosimilar-first strategies. As patents on expensive biologic drugs expire, lower-cost biosimilars offer a critical opportunity for savings. This strategy prioritizes the use of these clinically equivalent, FDA-approved alternatives, which can dramatically reduce spending on treatments for conditions like autoimmune disorders and cancer without compromising care.

Another major focus is GLP-1 management. The explosive popularity of drugs like Ozempic and Wegovy has created a significant financial challenge for health plans. The Cobalt/Navion model introduces programs that ensure these medications are used appropriately through measures like independent prior authorization, while also exploring holistic wellness solutions to manage conditions like diabetes and obesity effectively.

Beyond these initiatives, the partnership introduces other powerful value levers, including:
* Patient Assistance Programs: Connecting eligible members with manufacturer programs to reduce out-of-pocket costs for high-cost specialty drugs.
* International Sourcing: Providing options for acquiring certain medications from certified international pharmacies at a fraction of the U.S. cost.
* Specialty Co-pay Support: Implementing solutions to mitigate the financial burden of specialty drug co-pays for members while managing plan costs.

Crucially, early results indicate these strategies can deliver substantial savings—sometimes without the need for an employer to switch PBMs or for members to get new insurance cards, minimizing disruption while maximizing financial impact.

The Competitive Shift in Benefits Administration

The Cobalt-Navion alliance exemplifies a broader trend in the benefits industry: the evolution of the TPA's role. As healthcare becomes more complex, TPAs are under pressure to offer more than just claims processing and network access. Strategic partnerships that bring specialized expertise in-house are becoming a key competitive differentiator.

By deeply integrating a pharmacy benefit consultant, Cobalt is positioning itself ahead of competitors who may rely on more siloed or less robust pharmacy solutions. This move not only provides a direct financial benefit to its employer clients but also empowers the brokers and benefit consultants who work with them. Armed with Navion's repricing support, analytics, and clinical team, Cobalt's partners are better equipped to win and retain business in a competitive market.

This integrated model signals a shift away from treating pharmacy benefits as a simple pass-through expense and toward actively managing it as a strategic component of a company's overall health and wellness program. As employers continue to seek refuge from relentless cost increases, such proactive and expert-driven partnerships are likely to become the new standard for effective benefits administration.