CVS is revamping the way it reimburses its pharmacies for prescription medications, a move that could make prescription drug pricing simpler and change how much consumers pay for their medicines.

The company said in an announcement Tuesday that its new pharmacy reimbursement model will bring more transparency to its drug pricing system. It’s a similar model to the one entrepreneur Mark Cuban is pushing with his Cost Plus Drugs company.

Currently, the prices customers pay for drugs and the payments pharmacies receive are largely determined by middlemen known as pharmacy benefit managers, which negotiate rebates from drug manufacturers to insurers. These complex reimbursement formulas aren’t directly based on what pharmacies spent to purchase specific drugs.

  • Franzia
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    1 year ago

    Damn mark Cuban did a thing and now I’m gonna save money. Capitalism actually working as intended? Undercutting brought the price down