CVS Health is introducing modifications to how its prescription drug pricing mannequin works, and that might result in some financial savings for patrons beginning subsequent yr.
The well being care large mentioned Tuesday that it’ll roll out a brand new reimbursement mannequin designed to make prices extra predictable on the drugstore counter. The corporate will begin providing it subsequent yr to some third-party money low cost card directors.
Money low cost playing cards like these supplied by GoodRx may give prospects a worth break on out-of-pocket prices for some prescriptions, relying on the particular person’s protection and the drug.
CVS Well being drugstores will begin utilizing the corporate’s new CostVantage mannequin extra broadly in 2025. It’s designed to make drug prices extra clear. It entails a method primarily based on the price of the drug, a set markup after which a price for filling the prescription.
CVS Well being runs one of many nation’s largest drugstore chains and a big pharmacy profit administration enterprise that operates prescription drug protection for large shoppers like insurers and employers.
It additionally sells medical insurance by way of its Aetna arm, and the corporate has been offering a rising quantity of care by way of its drugstores and clinics.
The corporate additionally introduced on Tuesday a ten% hike in its quarterly dividend and laid out its forecast for subsequent yr. CVS Well being expects adjusted earnings of at the least $8.50 per share. It additionally forecasts complete income of at the least $366 billion.
Analysts anticipate earnings of $8.51 per share on $344.5 billion in income, in accordance with FactSet.
Edward Jones analyst John Boylan mentioned in an e mail that he noticed the stronger-than-expected income steering and dividend hike as a “show of confidence by management.”
Shares of CVS Well being Corp., primarily based in Woonsocket, Rhode Island, jumped 3.7%, or $2.54, to shut Tuesday at $71.02 whereas broader indexes slipped.
