Reuters (12/5, Beasley) reports CVS Health Corp announced as of the beginning of 2019 a new prescription benefit option for employer-sponsored plans that will ensure clients receive all rebates and discounts paid by drugmakers. The new plan, called “guaranteed net cost,” may serve to counter criticism of pharmacy benefit managers (PBMs), often the beneficiaries of rebates paid by pharmaceutical companies. CVS Caremark president Derica Rice said, “If rebates go away, this model accommodates that, but as long as we get to the lowest net cost we are indifferent.” The plans may eventually be available to other clients, including government.
Forbes (12/5) reports, “In August, CVS grabbed headlines when it disclosed that it has historically retained 2% of rebates negotiated with drug makers, which this year translates to 3% of the company’s annual earnings per share, or about $300 million.” The move by CVS echos a growing trend among PBMs generally to increase transparency on drug pricing for consumers.
The Washington Examiner (12/5, Williams) reports the plan will provide customers a “guaranteed average cost per prescription,” determined by inflation, cheaper generic alternatives, and rebate amounts.
Also covering the story are Fortune (12/5, Sherman), a second article in Fortune (12/5, Mukherjee), Healthcare Finance News (12/5, Morse), and Health Exec (12/5, Baxter).
Related Links:
— “CVS offers ‘guaranteed net cost’ for pharmacy benefit clients, “Deena Beasley, Reuters, December 05, 2018.