CVS Changing the Way It Determines Prescription Drug Prices

CVS Changing , the Way It Determines , Prescription Drug Prices.

CVS has announced it will revamp the way it makes reimbursement payments to pharmacies for prescription medications.

CNN reports that the move could result in simpler prescription drug pricing and change the way consumers purchase their medications.

CNN reports that the move could result in simpler prescription drug pricing and change the way consumers purchase their medications.

In a December 5 announcement, CVS said the new reimbursement model would be more transparent in regards to the chain's drug pricing system.

In a December 5 announcement, CVS said the new reimbursement model would be more transparent in regards to the chain's drug pricing system.

The new CVS CostVantage system will use a simple formula that includes the cost of drugs, a set markup price and a fee to determine the cost of medications.

The new approach is set for a 2025 commercial launch.

CNN reports that CVS executives said that the shift in payment methods could result in certain drugs costing less, while other medications would increase in price.

We are leading with an approach that will shift how our retail pharmacy is compensated by implementing a more transparent and sustainable model that fairly aligns pharmacy reimbursement to the quality services we provide, Prem Shah, President of CVS Pharmacy and chief pharmacy officer at CVS Health, via CNN.

It provides our [pharmacy benefit managers] and payor clients a foundational step towards more pricing clarity for consumers, Prem Shah, President of CVS Pharmacy and chief pharmacy officer at CVS Health, via CNN.

According to the Organization for Economic Cooperation, U.S. consumers spend an average of $1,200 every year on prescription drugs.

The Kaiser Family Foundation says that one out of three adults in the U.S. say they have been unable to take prescribed medications due to their cost.