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

CVS Health is introducing changes to the way its prescription drug pricing model works, which could mean some savings for customers starting next year.

The health care giant said Tuesday it will roll out a new reimbursement model designed to make costs at the drugstore counter more predictable. The company will start offering it to a number of third-party cash discount card operators next year.

Cash discount cards like those offered by GoodRx can give customers a price advantage over out-of-pocket costs for some prescriptions, depending on the person's and drug's coverage.

CVS Health drugstores will begin using the company's new CostVantage model more broadly in 2025. It is designed to make drug costs more transparent. This involves a formula based on the cost of the drug, a fixed surcharge and then a fee for filling the prescription.

CVS Health operates one of the nation's largest drugstore chains and a major pharmacy benefits management company that provides prescription drug coverage for major customers such as insurers and employers.

It also sells health insurance through its Aetna business, and the company is increasingly offering care through its drugstores and clinics.

The company also announced a 10% increase in its quarterly dividend on Tuesday and released 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 revenue of $344.5 billion, according to FactSet.

Edward Jones analyst John Boylan said in an email that he saw the stronger-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.