CVS Health joins in on a new way for pharmacies to get paid for prescription drugs

CVS Health un­veiled a new phar­ma­cy re­im­burse­ment mod­el Tues­day that would sim­pli­fy how it prices the drugs it sells.

Rough­ly 9,000 re­tail phar­ma­cies owned by the largest chain in the na­tion will be re­im­bursed us­ing a for­mu­la based on a drug’s cost, a fixed markup and a flat ser­vice fee un­der a new mod­el named CVS Cost­Van­tage, the com­pa­ny an­nounced in a call to in­vestors Tues­day. Cost­Van­tage will bring more “trans­paren­cy and sim­plic­i­ty” to the drug-pric­ing sys­tem, the com­pa­ny said.

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