CVS Changing , the Way It Determines , Prescription Drug Prices.<br />CVS has announced it will revamp the way <br />it makes reimbursement payments to <br />pharmacies for prescription medications.<br />CNN reports that the move could result in simpler <br />prescription drug pricing and change the way <br />consumers purchase their medications.<br />CNN reports that the move could result in simpler <br />prescription drug pricing and change the way <br />consumers purchase their medications.<br />In a December 5 announcement, CVS said the new <br />reimbursement model would be more transparent <br />in regards to the chain's drug pricing system.<br />In a December 5 announcement, CVS said the new <br />reimbursement model would be more transparent <br />in regards to the chain's drug pricing system.<br />The new CVS CostVantage system will use a simple <br />formula that includes the cost of drugs, a set markup <br />price and a fee to determine the cost of medications.<br />The new approach is set for <br />a 2025 commercial launch.<br />CNN reports that CVS executives said that the shift in <br />payment methods could result in certain drugs costing <br />less, while other medications would increase in price.<br />We are leading with an approach that <br />will shift how our retail pharmacy is <br />compensated by implementing a more <br />transparent and sustainable model that <br />fairly aligns pharmacy reimbursement <br />to the quality services we provide, Prem Shah, President of CVS Pharmacy and <br />chief pharmacy officer at CVS Health, via CNN.<br />It provides our [pharmacy benefit <br />managers] and payor clients a <br />foundational step towards more <br />pricing clarity for consumers, Prem Shah, President of CVS Pharmacy and <br />chief pharmacy officer at CVS Health, via CNN.<br />According to the Organization for Economic <br />Cooperation, U.S. consumers spend an average <br />of $1,200 every year on prescription drugs.<br />The Kaiser Family Foundation says that one out of <br />three adults in the U.S. say they have been unable <br />to take prescribed medications due to their cost.
