The CVS CostVantage model is designed to provide clearer pricing by factoring in the underlying cost of a drug, a defined markup and a dispensing fee that reflects the value of the pharmacy services provided, according to a Jan. 6 news release shared with Becker’s. The approach aims to reduce reliance on cross-subsidization and help address the financial challenges community pharmacies face.
The model is also intended to bring more transparency to the relationship between pharmacies, pharmacy benefit managers and payors, while also improving reimbursement for pharmacies.
This move follows a trend in the industry toward more straightforward drug pricing. For example, Mark Cuban’s online pharmacy, Express Scripts, and CVS are working to make drug pricing more transparent. CVS’ PBM is also set to launch TrueCost in 2025, a program that aims to enhance transparency around administrative fees and prescription drug costs.
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