CVS Pharmacy, one of the nation’s largest pharmacy chains, has announced plans to revamp the way it reimburses its pharmacies for prescriptions.
The new reimbursement model, CVS CostVantage, promises to pay pharmacies an amount that more closely reflects how much they spend on a drug.
“We are successfully executing on our strategy to advance the future of health care while unlocking new value for consumers,” said CVS Health President and CEO Karen S. Lynch. “The combination of our businesses, and the key growth areas we have invested in, drive our ability to lower the total cost of care, improve health outcomes, and deliver on our commitments to our customers, consumers, and shareholders.”
CVS Health announcing plans to overhaul drug pricing at its pharmacies. CEO Karen Lynch explains: "We're a leader. And this is our opportunity to chart a new path."$CVS #healthcare pic.twitter.com/kHqqQxo5sl
— The Exchange (@CNBCTheExchange) December 5, 2023
According to KFF, the independent source for health policy research, polling, approximately 6 in 10 adults say they are currently taking at least one prescription drug and 25% say they currently take four or more prescription medications. In comparison, about 8 in 10 adults (82%) say the cost of prescription drugs is unreasonable; most say affording prescriptions is either “very” or “somewhat easy” (65%). Even more troubling, about 3 in 10 adults said they had not taken their prescribed medications due to prescription costs.
CVS CostVantage will use a “transparent formula” built on the cost of the drug, a set markup, and a fee that reflects the care and value of pharmacy services to help ensure that CVS Pharmacy locations will continue to be a critical touchpoint for consumers to access affordable health care in their communities.
However, the new pricing model does not guarantee lower prices for healthcare patients.
More flim-flam from CVS w/ its new CostVantage pricing model. If you really think CVS will do anything to lower its profits to save patients on their drugs I have a nice bridge in the desert for you to buy. This is running scared of how Congress is going after the #PBM mob.
— Ted Okon (@TedOkonCOA) December 6, 2023
“We still have a situation where drug manufacturers and in some cases specialty pharmacies that control certain in-demand drugs, particularly like for example a lot of immuno-oncology drugs for various types of cancers. We’re not actually negotiating prices of the drugs themselves,” Nelson said, Harry Nelson, a health care lawyer, tells KSBY.
CVS Pharmacy plans to launch CVS CostVantage for commercial health plans on Jan. 1, 2025.
