MADISON, Wis. — Construction has begun in Madison on a new headquarters for a pharmacy benefits company.

Navitus Health Solutions' new headquarters is part of a larger project called West Place, the Wisconsin State Journal reported. Navitus' $28 million space features five-stories and 80,000 square feet.

Navitus CEO Terry Seligman said the company has outgrown its 50,000-square-foot facility. The company has about 780 employees, including 200 in Madison. The company, owned by SSM Health, hopes to double in size within the next five to seven years.

Navitus manages prescription drug benefits for more than 5 million people at more than 500 employers and health plans, up from 1 million people and about 80 clients in 2010, Seligman said. The company oversees $4 billion in drug spending annually, he said.

Navitus's clients include Alliant Energy, Johnsonville, Land's End and Group Health Cooperative of South Central Wisconsin.

While Navitus has grown in recent years, the company accounts for less than 2 percent of the pharmacy benefit managers market, said Pete Beste, chief financial officer.

Pharmacy benefit managers act as brokers between drug makers, insurers, employers, patients and pharmacies. They help determine the drugs people can take, where the drugs can be purchased and how much they cost. Such companies have recently come under scrutiny as the costs of prescription drugs rise.

Navitus doesn't absorb rebates or differentials on what it charges patients and what it pays pharmacies, company officials said. Instead, Navitus assesses an administrative fee.

"We pass through the cost 100 percent; we pass through the rebate 100 percent — no games, no funny business," Beste said.

Beste said he believes the company is a good alternative to the current PBM industry trends.