Current:Home > NewsCVS is switching up how it pays for prescriptions. Will it save you money?-Angel Dreamer Wealth Society D1 Reviews & Insights
CVS is switching up how it pays for prescriptions. Will it save you money?
View Date:2024-12-24 08:58:54
CVS is switching up the way it pays for prescription drugs and moving toward a “more transparent” reimbursement model.
The pharmacy chain announced a new payment model, CVS CostVantage, on Tuesday. Traditionally, the rate pharmacies are paid for filling prescriptions is determined through a complex system that involves middlemen called pharmacy benefit managers, or PBMs, with payments that are not directly based on what pharmacies spend on drugs.
Under the new model, CVS’s more than 9,000 pharmacies will have a reimbursement rate that defines the cost of the drug using a “transparent formula” based on the cost of the drug, a set markup price and a pharmacy services fee.
CVS Pharmacy plans to launch CVS CostVantage for commercial health plans in 2025.
Does this mean cheaper prescriptions for CVS pharmacy customers?
The Wall Street Journal, which was the first to break to the news, reported that CVS executives said prescription drugs may cost less under the new system, while others might see a price hike. Declines should be more common than increases, they said.
"We are successfully executing on our strategy to advance the future of health care while unlocking new value for consumers," CVS Health President and CEO Karen Lynch said in a statement.
Prescription for disaster:America's broken pharmacy system in revolt over burnout and errors
Why now?
The updated model comes as the pharmaceutical industry’s pricing methods face backlash from patients and lawmakers, with Congress considering bills to force more transparency.
The move could help improve margins for CVS’s retail pharmacy business. CVS's statement notes that the changes should help ensure that its pharmacy locations “will continue to be a critical touchpoint for consumers to access affordable health care in their communities.”
veryGood! (2)
Related
- Louisiana asks court to block part of ruling against Ten Commandments in classrooms
- Khloe Kardashian Shares Sweet Insight Into Son Tatum’s Bond With Saint West
- Angels’ Ben Joyce throws a 105.5 mph fastball, 3rd-fastest pitch in the majors since at least 2008
- Donald Trump biopic releases first clip from controversial 'The Apprentice' film
- The Daily Money: Markets react to Election 2024
- LL COOL J’s First Album in 11 Years Is Here — Get a Signed Copy and Feel the Beat of The Force
- '1000-lb Sisters' star Amy Slaton arrested on drug possession, child endangerment charges
- Ryan Reynolds honors late 'Roseanne' producer Eric Gilliland: 'It's a tragedy he's gone'
- Hurricane forecasters on alert: November storm could head for Florida
- 22 Ohio counties declared natural disaster areas due to drought
Ranking
- Asian sesame salad sold in Wegmans supermarkets recalled over egg allergy warning
- Obsessed With Hoop Earrings? Every Set in This Story Is Under $50
- Arkansas judge convicted of lying to feds about seeking sex with defendant’s girlfriend
- Luca Guadagnino and Daniel Craig present ‘Queer’ to Venice Film Festival
- Wicked's Ethan Slater Shares How Ariana Grande and Cynthia Erivo Set the Tone on Set
- Frances Tiafoe advanced to the US Open semifinals after Grigor Dimitrov retired injured
- Afghan refugee pleads no contest to 2 murders in case that shocked Albuquerque’s Muslim community
- Afghan refugee pleads no contest to 2 murders in case that shocked Albuquerque’s Muslim community
Recommendation
-
Tua Tagovailoa playing with confidence as Miami Dolphins hope MNF win can spark run
-
New Northwestern AD Jackson aims to help school navigate evolving landscape, heal wounds
-
NFL Week 1 odds: Moneylines, point spreads, over/under
-
World pumps out 57 million tons of plastic pollution yearly and most comes in Global South
-
Todd Golden to continue as Florida basketball coach despite sexual harassment probe
-
Former tax assessor and collector in Mississippi is charged with embezzlement
-
Horoscopes Today, September 3, 2024
-
Amazon expands AI-powered Just Walk Out to more NFL football stadiums, college campuses