CVS Health is introducing 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.
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.
Source: Boston Globe
45 Viral TikTok Beauty Products You'll Wish You Bought Sooner
'VPR' Fan Conspiracy About James Kennedy and Dog’s Reunion Gets Debunked
Laken Riley murder: Students on UGA campus, joggers nationwide shocked after alleged illegal immigrant killing
Olympic security fears as TOP SECRET police plans for Paris Games are stolen
Qatar Airways to Relocate Operations to Manohar International Airport, Enhancing Travel Experience
The Best Moisturizing Body Washes I’ve Tried for My Super Dry Skin
Beyoncé Revealed She’s Dealt With Scalp Psoriasis While Promoting Her New Hair Care Line
People Who Have Had COVID Face a Much Higher Risk of Chronic Fatigue, Study Says
Meghan Markle and Prince Harry Just Fired Back at Critics With 3 Words After Sussex Website Rebrand, Canada Trip
The 5 Best Skin Care Products You Can Buy at Costco, According to a Dermatologist
‘Little People, Big World’: Amy Roloff ‘Never Wanted to Have Anything to Do With’ Caryn Chandler, She Says
‘Little People, Big World’: Amy Roloff Doesn’t Believe Matt Roloff Will Leave Her Roloff Farms
Paul McCartney Felt He Could Be ‘Goofy’ When He Sang The Beatles’ ‘Michelle’ to the Obamas
An Artist Remixed Elvis Presley’s ‘Rubberneckin” Because He Didn’t Like It Much
Nathan Fillion Revealed Why He Preferred His ‘Rookie’ Character Over Richard Castle
Sport22 hours ago
I’m an ex-Prem ace who managed in Sudan & Oman, now my son’s more famous than me
News21 hours ago
Camilla takes the reigns as head of the Royal family: Confident-looking Queen steps up to represent the British monarchy at memorial service attended by whole host of European royals in Charles’ absence
Tech18 hours ago
Updates From The Mandalorian & Grogu, and More
News18 hours ago
Lawsuit alleges New York doctor died of allergic reaction after eating at Disney World restaurant
News23 hours ago
How the Pentagon Learned to Use Targeted Ads to Find its Targets—and Vladimir Putin
Lifestyle21 hours ago
Diddy Denies New $30 Million Sexual Assault Lawsuit By Producer
News22 hours ago
King Constantine of Greece memorial service LIVE: Camilla leads tributes in Charles’ absence, Prince William pulls out for ‘personal reasons’, Sarah Ferguson arrives with Prince Andrew
News22 hours ago
Athens taxis on a 48-hour strike that will coincide with a nationwide public sector stoppage