Key Highlights
- CVS Health launches CVS CostVantage to transform retail pharmacy reimbursement with clarity and sustainability.
- Simplified pricing model based on the drug’s cost, defined markup, and dispensing fee.
- Advances transparency for PBMs and payors while supporting plan sponsors and patients.
- Potential expansion to Medicare and Medicaid prescriptions in the future.
Source: Direct
Notable Quote
- “Delivering on our commitment to transform the pharmacy model, we successfully led the way forward, contracting with pharmacy benefit managers and other payors to advance a more transparent approach to reimbursement for the prescriptions we dispense and the services we provide.” – Prem Shah, Group President at CVS Health
Why This Matters
CVS Health’s CVS CostVantage model marks a critical shift in retail pharmacy services by addressing longstanding challenges in reimbursement practices. The move ensures pricing aligns with the real costs and value of services provided while fostering transparency and sustainability in the healthcare industry. This innovation not only benefits pharmacies but also supports payors, plan sponsors, and ultimately, patients, setting a new standard in pharmacy care delivery. With the potential for future inclusion of Medicare and Medicaid prescriptions, the model demonstrates CVS Health’s commitment to evolving the healthcare landscape for broader accessibility and equity.
