CVS Health(US:CVS) Prnewswireยท2025-01-06 13:00Core Insights - CVS Health has introduced the CVS CostVantage reimbursement model for all commercial prescriptions dispensed at CVS Pharmacy, aiming for a more transparent and sustainable retail pharmacy service [1][2] - The new model is designed to reflect the actual drug acquisition costs, a set markup, and a fee for pharmacy services, enhancing the transparency of pharmacy benefit managers (PBMs) [1][7] CVS CostVantage Model - The CVS CostVantage formula is based on the drug's underlying cost, a defined markup, and a dispensing fee, which helps eliminate the need for higher rates on some medications to subsidize losses on others [6][5] - This model aims to provide clarity in pricing and contracting, moving away from traditional cross-subsidization methods [5][6] Community Pharmacy Importance - Community pharmacies play a crucial role in healthcare, with 81% of consumers trusting their local pharmacists and nearly one in three Americans visiting their pharmacy at least once a week [4][3] - The historical reimbursement methods have not adequately reflected the value and costs associated with community pharmacy services, necessitating a change [5][4] Future Expansion Plans - CVS Health plans to expand the CVS CostVantage model to include Medicare and Medicaid managed prescriptions in the future, furthering its commitment to transforming the pharmacy model [2][1] Company Overview - As of September 30, 2024, CVS Health operates over 9,000 retail locations and serves approximately 90 million plan members through its pharmacy benefits manager [8] - The company is focused on creating new value sources through an integrated model that enhances access to quality care and lowers overall healthcare costs [9][8]