CVS' new CostVantage drugg payment model in their pharmacies aims to boost savings by incorporating drug cost, a fixed markup, and a service value fee reflection in its formula.
Despite the buzz around Mark Cuban's Cost Plus Pharma, which sells generic meds directly to customers, CVS' new plan, relying on established pharmacy benefit management systems, and passing through almost 100% of rebates to clients, is a stark contrast.
Yes, you heard that right. CVS' new pricing formula focuses on total transparency with pass-through rebates, while its sister company CVS Caremark seeks to keep an aggressive stance against obscure pricing norms and deals with middlemen by providing no-nonsense pricing for drug prescriptions.
Now, we must dig deeper to see if consumers will truly benefit from this new model.
Transparent Pricing: The TrueCost Advantage
By anchoring reimbursement on acquisition costs, CVS aims to sustain savings for its partners in payer services. When customers see an affordable cost, they flip for CVS TrueCost, which is adored by 75% of commercial clients via implemented solutions.
Building a Transparent and Biosimilar-friendly Future
CVS works diligently with biosimilars – like the Humira knock-off delivering a shamefully low cost (80% lesser than Humira) to members. This saves clients some big bucks by offering a $0 copay.
With all these promising moves, CVS Innovation and Transparency have rung loud bells in the industry, challenging traditional PBM models. But what crazy ideas does Mark Cuban cook up in response?
Mark Cuban's Cost Plus Prescription Drugs
This loopy plan eliminates intermediaries by connecting straight to drug manufacturers; skipping all the hoop-la but making it more straightforward for residents to see bespoke prescrip cost.
The Downside: Trudging Through Waters of Uncertainty
Despite ambitious stretch goals, both Mark Cuban's and CVS Innovation models face their roadblocks:
- Selling dreams via transparency that could be a hard-breathing reality for consumers.
- Engaging customers with clear messaging that resonates and sets expectations for viable savings.
- Keeping comprehensive cost control while dealing with niggling rebates and shifting regulations.
As both enterprises plot their paths towards record-low prescription costs, their ultimate test is offering tangible savings and thriving amidst fierce competition. Will they accomplish their goals, or is it just a battle of bravado and smoke screens?
Both models stake claims to cutting prescription drug price tags, with CVS building on an established system and offering pass-through rebates, while Cost Plus Drugs disrupts the industry by cutting out middlemen and flashing straightforward pricing.
Transparency Wins: The Imperative for Cost Control
Putting the whammy on the missing link – middlemen – is both models' step towards better cost control. The pressure for cost-cutting escalates as more regulations sift through the murky mire of intermediaries and eschew their old-school tactics to heed consumers' needs.
As they tackle the challenges that lie ahead, we recommend clinging to the following:
- Actively promote the excellent price cuts (e.g., online prescriptions, transparent pricing, etc.)
- Encourage negotiating for lower prices from doctors and drug providers to consolidate savings.
- Develop agile technology to swiftly incorporate new pricing models that rock clients' savings.
However, both Propeller and Cost Plus models may face challenges in striking a clever balance between transparency and long-term sustainability. It remains to be seen if they can continue to sizzle (or scorch!) through the hurricane of niggling regulatory hurdles and competition, delivering significant cost savings for consumers.
