CVS Pharmacy Implements New Pricing Model for Prescription Drugs

CVS Pharmacy is introducing a new reimbursement model called CVS CostVantage, aiming to bring greater transparency and simplicity to the drug pricing system. The model will reset how reimbursement happens by defining drug costs and related reimbursement with contracted pharmacy benefit managers and payors. The impact on consumers will be seen in the first half of 2024, primarily for patients using cash pharmacy discount cards. CVS plans to incorporate CostVantage into contracts with pharmacy-benefit managers starting in 2025. This move aligns with the industry's efforts to provide clarity on drug pricing and follows the example of other companies, such as Cost Plus Drug, that promote transparency in drug costs.