CVS Health intros CostVantage, TrueCost
CVS Health said the way community pharmacy is currently reimbursed for services doesn’t align to the underlying costs of doing business, so the retailer is unveiling a reimbursement solution dubbed CostVantage.
Additionally, its pharmacy benefits management business recently introduced TrueCost.
"CVS Pharmacy is helping to ensure a sustainable community pharmacy industry by changing the reimbursement model and bringing much needed transparency and simplicity to the system with CVS CostVantage," the company said. "Launching for commercials payors in 2025, it will help shift how our pharmacy is compensated by payors by aligning pharmacy reimbursement to the quality services we provide and the prescriptions we dispense. Importantly, this will also help provide greater transparency for PBMs and payors and serve as a crucial building block for PBMs to create a more transparent model — like TrueCost."
[Read more: CVS launches new pharmacy reimbursement model, brand for health services segment]
CVS Health went on to say that TrueCost is its PBM’s response to a rapidly changing landscape in the marketplace. "We’ve heard the call — from our clients, from lawmakers and from pharmacies — for greater pricing transparency, predictability and sustainability," the company said. "And we are answering it. TrueCost will be a breakthrough step forward for our PBM clients and members and will further support community pharmacies."
The company said clients will see greater pricing transparency through drug level, net cost pricing guarantees, and members get reassurance that the price they are paying is more reflective of the pharmacies acquisition cost of the drug, when plan design allows.
"We’re excited about what TrueCost will mean for our customers, and most importantly the nearly 90 million Americans who get their pharmacy benefits through CVS Caremark," the company said. "Specifically, client pricing will better reflect the net cost of prescription drugs, with a new level to drug specific rebate values, something they have been asking for. And TrueCost will enable a pharmacy reimbursement structure in which CVS Caremark will be better positioned to reimburse pharmacies for drugs based on their acquisition costs, with dispensing fees that reflect the services they provide to their patients."
[Read more: CVS Health reports strong Q3]
Lastly, CVS Health said that CostVantage and TrueCost are an important step forward to bring greater transparency and clarity to a complex healthcare system and help pharmacy on the pathway to a more sustainable, transformative future that supports important access to pharmacy care.