Healthcare DIVE January 8, 2025
Rebecca Pifer

CVS’ efforts to reform how its pharmacies are paid have reached a significant milestone that should stabilize flagging margins.

Dive Brief:

  • CVS has overhauled how its pharmacies are paid by commercial payers, after successfully converting contracts with pharmacy benefit managers over to a novel reimbursement model for 2025.
  • Now, all commercial prescriptions dispensed at CVS pharmacies will be reimbursed the cost of the drug, plus a set markup and additional pharmacist fee for handling and dispensing the medication, the healthcare conglomerate announced this week.
  • The “cost plus” model, called CostVantage, should result in more reliable revenue for CVS’ 9,000 retail pharmacies, according to the Rhode Island-based company. CVS is already eyeing an expansion of CostVantage to Medicare and Medicaid...

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