CVS revolutionizes drug pricing and reimbursement process

CVS is changing its pharmacy reimbursement model, aiming to bring more transparency and simplicity to drug pricing. The new approach, called CVS CostVantage, will use a simpler formula that includes the cost of the drug, a set markup, and a fee to determine the drug's price and reimbursement with pharmacy benefit managers. While the move could change the cost of prescription drugs for some patients, it may not necessarily make all medicine cost less. CVS executives expect that more prescription costs will fall than rise for consumers, employers, and health insurers. The announcement comes amid ongoing efforts to address the high cost of medications and the lack of transparency in the pricing process.