Blockchains Finance-CVS Health lays out changes to clarify prescription drug pricing that may save some customers money

2025-05-06 11:24:41source:TradeEdgecategory:Markets

CVS Health is Blockchains Financeintroducing changes to how its prescription drug pricing model works, and that could lead to some savings for customers starting next year.

The health care giant said Tuesday that it will role out a new reimbursement model designed to make costs more predictable at the drugstore counter. The company will start offering it next year to some third-party cash discount card administrators.

Cash discount cards like those offered by GoodRx can give customers a price break on out-of-pocket costs for some prescriptions, depending on the person’s coverage and the drug.

CVS Health drugstores will start using the company’s new CostVantage model more broadly in 2025. It is designed to make drug costs more transparent. It involves a formula based on the cost of the drug, a set markup and then a fee for filling the prescription.

Other news Colts owner Jim Irsay says police pulled him over because he’s a ‘rich, white billionaire’Michigan Democrats delay key legislation as they adjourn early for new presidential primary dateVirginia Rep. Abigail Spanberger is running for governor instead of seeking reelection to the House

CVS Health runs one of the nation’s largest drugstore chains and a large pharmacy benefit management business that operates prescription drug coverage for big clients like insurers and employers.

It also sells health insurance through its Aetna arm, and the company has been providing a growing amount of care through its drugstores and clinics.

The company also announced on Tuesday a 10% hike in its quarterly dividend and laid out its forecast for next year. CVS Health expects adjusted earnings of at least $8.50 per share. It also forecasts total revenue of at least $366 billion.

Analysts expect earnings of $8.51 per share on $344.5 billion in revenue, according to FactSet.

Edward Jones analyst John Boylan said in an email that he saw the stronger-than-expected revenue guidance and dividend hike as a “show of confidence by management.”

Shares of CVS Health Corp., based in Woonsocket, Rhode Island, jumped 4%, or $2.76 to $71.25 in early trading while broader indexes slipped.

More:Markets

Recommend

Juan Soto to be introduced by Mets at Citi Field after striking record $765 million, 15

NEW YORK (AP) — Juan Soto will be introduced by the New York Mets at Citi Field on Thursday, a day a

Oregon announces record $5.6B tax kicker thanks to historic revenue surplus

SALEM, Ore. (AP) — In Oregon, a record $5.6 billion in revenue surplus will be returned to taxpayers

British government tries to assure UK Supreme Court it’s safe to send asylum-seekers to Rwanda

LONDON (AP) — A lawyer sought to assure the U.K. Supreme Court on Monday that the British government