CVS Implements New Pricing Model for Prescription Drugs

CVS is changing its drug pricing formula to increase transparency and simplify costs. The company will now base drug costs on the amount it pays for a drug, limiting the markup and service fee to customers. This move aligns with the industry's decision to be more straightforward with drug prices. The change will have a consumer impact starting in the first half of 2024 for those using cash pharmacy discount cards at CVS Pharmacy, and in 2025, the model will be launched with pharmacy benefit managers. The new pricing model is expected to benefit both pharmacies and consumers by providing more predictable reimbursement rates and potentially reducing overpayment for generic drugs.