Pharmacists are some of the most trusted health care providers, and Americans are increasingly relying on the convenient and timely care they provide.
That's why it's more important than ever to keep our industry thriving.
Previously, pharmacy reimbursement models were reasonable.
But healthcare is complex and prices are rising.
The pressures we face today outweigh business growth, operational efficiency, and cost-of-goods improvements.
As a result, reimbursement for the prescriptions we fill has decreased at an unprecedented rate.
And today, as health care providers, community pharmacies not only fill prescriptions, but patients increasingly rely on them to fill gaps in care.
Refunds are separate from the actual cost of the product or service.
Simply put, the current model is unsustainable.
The way pharmacies have traditionally reimbursed drugs can no longer support the cost of doing business.
It's time for a change.
That's why we introduced a simple new reimbursement model that will lead the way in improving the long-term viability of the pharmacy industry.
CVS CostVantage™ brings much-needed transparency and sustainability to our pharmacy business and the marketplace as a whole.
Starting in January 2025, CVS Pharmacy will use a transparent formula to define drug costs and related reimbursements with all partner PBMs and payers.
This formula is based on the underlying cost of the drug, plus predefined markups and dispensing fees associated with the care and value we provide, and is partially used to subsidize losses on other drugs. will help address the need for higher rates of medicines.
The new model will help consumers continue to have access to affordable health care in our stores, continue to invest in our stores and colleagues, and simplify and transparently work with pharmacies. The goal is to accelerate the work PBMs and their payers are doing to increase the .
Because Americans everywhere need a local pharmacy they can trust.
With more than 9,000 CVS Pharmacy locations, no other company is better positioned to take on one of the greatest challenges facing our nation while creating a more vibrant future for our nation's businesses and industry.
Together, we are building a world of health that puts every consumer at the center.
