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

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

The healthcare giant said Tuesday it will implement a new reimbursement model designed to make costs more predictable at the pharmacy counter. The company will begin offering it next year to some third-party cash discount card administrators.

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

CVS Health pharmacies will begin 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 fixed margin, and then a fee for filling the prescription.

CVS Health operates one of the nation’s largest pharmacy chains and a large pharmacy benefit management company that operates prescription drug coverage for large customers such as insurers and employers.

It also sells health insurance through its Aetna division, and the company has been providing an increasing amount of care through its pharmacies and clinics.

The company also announced a 10% increase in its quarterly dividend on Tuesday and outlined its guidance 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 viewed the better-than-expected revenue guidance and dividend increase as a “show of confidence from management.”

Shares of Woonsocket, Rhode Island-based CVS Health Corp. rose 3.7%, or $2.54, to close Tuesday at $71.02, while broader indexes fell.