Will CVS' "tobacco payment" steer patients away from competing pharmacies?

In a decision that is the first of its kind, CVS Health — the second-largest drugstore chain in the nation — is developing a tobacco-free prescription network that will require patients who fill their prescriptions at stores that sell tobacco products to pay an extra co-payment, according to The Washington Post.

CVS prescription drug networks cover approximately 65 million people, and the tobacco-free network will be available to employers and others who use Caremark pharmacy benefits management business to manage their prescription drug coverage.

Those who choose to participate in the tobacco-free network will be charged an extra co-payment if they choose have their prescriptions filled at stores that are not tobacco free, and the amount of the co-payment will vary according to the client. However, if they fill their prescriptions at CVS pharmacies or other tobacco-free locations, such as Target, they will not be required to make the additional payment, according to the report.

The development of the network marks the second strong stance CVS has taken against tobacco this year. In February, the drugstore chain announced it would no longer sell tobacco at any of its stores nationwide.

Companies might be interested in the network as a mechanism to help improve the health of their employees by encouraging them to stop smoking. However, this type of network is untested and may have no effect on employee smoking rate. President of the business research firm Pembroke Consulting Adam J. Fein believes few benefits providers will choose to participate in the tobacco-free network because of the uncertainty of the impact it will have on employees' health or their smoking habits.

Although patients could be steered away from competing pharmacies by CVS' new network, Mr. Fein does not see the tobacco-free network as creating an unfair competitive advantage that would spark anti-trust concern, according to the report.

The tobacco-free network will be available in 2015.

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