CVS Health launches CostVantage model

CVS Health has announced that starting this year, all commercial prescriptions dispensed through CVS Pharmacy will be contracted through its new CVS CostVantage reimbursement model.

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.