Current:Home > MarketsEthermac Exchange-CVS Health lays out changes to clarify prescription drug pricing that may save some customers money -Capitatum
Ethermac Exchange-CVS Health lays out changes to clarify prescription drug pricing that may save some customers money
Rekubit View
Date:2025-04-07 03:43:25
CVS Health is Ethermac Exchangeintroducing 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.
veryGood! (7)
Related
- Jorge Ramos reveals his final day with 'Noticiero Univision': 'It's been quite a ride'
- From 'Almost Famous' to definitely famous, Billy Crudup is enjoying his new TV roles
- Dallas mayor switches parties, making the city the nation’s largest with a GOP mayor
- World's oldest wooden structure defies Stone-Age stereotypes
- Meta donates $1 million to Trump’s inauguration fund
- Texas, Oklahoma were to pay a steep price for leaving Big 12 early. That's not how it turned out
- What has made some GOP senators furious this week? Find out in the news quiz
- Judge overseeing case to remove Trump from ballot agrees to order banning threats and intimidation
- Jorge Ramos reveals his final day with 'Noticiero Univision': 'It's been quite a ride'
- Capitol rioter who attacked AP photographer and police officers is sentenced to 5 years in prison
Ranking
- Eva Mendes Shares Message of Gratitude to Olympics for Keeping Her and Ryan Gosling's Kids Private
- Things to know about California’s new proposed rules for insurance companies
- Some crossings on US-Mexico border still shut as cities, agents confront rise in migrant arrivals
- Bus carrying Farmingdale High School band crashes in New York's Orange County; 2 adults dead, multiple injuries reported
- Everything Simone Biles did at the Paris Olympics was amplified. She thrived in the spotlight
- Google search tips: 20 hidden tricks, tools, games and freebies
- 'Potential' tropical storm off Atlantic Ocean could impact NFL Week 3 games
- After overdose death, police find secret door to fentanyl at Niño Divino daycare in Bronx
Recommendation
Shilo Sanders' bankruptcy case reaches 'impasse' over NIL information for CU star
Hawaii economists say Lahaina locals could be priced out of rebuilt town without zoning changes
United States and China launch economic and financial working groups with aim of easing tensions
Spain’s World Cup winners return to action after sexism scandal with 3-2 win in Sweden
Will the 'Yellowstone' finale be the last episode? What we know about Season 6, spinoffs
Former FBI top official pleads guilty to concealing payment from foreign official
A Taylor Swift Instagram post helped drive a surge in voter registration
A Taylor Swift Instagram post helped drive a surge in voter registration