CVS Health to overhaul pharmacy compensation for transparency

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CVS Health to overhaul pharmacy compensation for transparency © Reuters.

WOONSOCKET – CVS Health (NYSE:) has announced a significant shift in its pharmacy compensation model, aiming to enhance transparency for health plans and employers. The new system, set to roll out next year, will calculate payments based on the actual costs of acquiring drugs, supplemented by fixed markups and service fees. This initiative is part of a broader industry movement towards more straightforward drug pricing strategies.

Prem Shah, chief pharmacy officer at CVS Health, highlighted the company’s commitment to align with the standard market practices in drug pricing. The move is seen as an effort to address the complex and often criticized economics of the pharmaceutical industry.

However, it’s important to note that this revamped model will not cover specialty medications or provide relief to independent pharmacists who have been facing challenges with low reimbursements from pharmacy benefit managers (PBMs), including CVS Caremark.

CVS Health’s announcement does not promise immediate savings for consumers or reduced costs for payers but represents a strategic step towards addressing concerns over transparency in drug pricing.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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