WHAT TO EXPECT AFTER CVS CHANGES DRUG PRICING FORMULA
Photo Credit: Gene J. Puskar
CVS is the latest pharmacy to change its drug pricing formula, a move it said would increase transparency and simplify costs.
The company will now base drug costs on the amount that it pays for a drug -- limiting the markup and service fee to customers.
"What CVS is doing -- at the pharmacy and at the PBM [pharmacy benefit managers] -- is rewiring or resetting how reimbursement happens in an industry that has become very complex and largely follows a model based on how things used to be a decade ago," a CVS Pharmacy spokesperson told ABC News. "Only we can take this kind of step forward, given our leadership on the PBM and pharmacy. It is a necessary foundational step to make this entire system more consumer-friendly, preserve choice for payers, and maintain a viable retail pharmacy industry."
