CVS Switching Prescription Pricing Model

Have you ever wondered how companies come up with the prices affixed to prescription drugs? Now, CVS is pulling back the curtain, saying it will use a more transparent model.

Starting next year, CVS says it will sell prescription medications with a set mark-up and fee- similar to the model being used by Mark Cuban’s Cost Plus Drugs. That model sells prescription at cost plus 15% and a $3 pharmacy fee.

The move could lead to reduced costs for both consumers and insurers.

CVS has more than 9,000 pharmacy locations and owns the nation’s largest pharmacy benefit manager (PBM), CVS Caremark.

The shift away from complex pricing formulas and the adoption of more transparent models by CVS Health and other pharmacy giants reflects a response to increased scrutiny from government officials.

This could be the start of a big change, but only time will tell just how much it affects the affordability of prescriptions. How much are you spending on your prescriptions? Tell us here.