CVS Health (CVS) Launches Caremark Cost Saver With a New Pact
CVS Health Corporation’s CVS company, CVS Caremark, partnered with GoodRx to launch Caremark Cost SaverTM that lowers pharmacy out-of-pocket drug costs for CVS Caremark clients' members. Beginning Jan 1, 2024, this program will offer GoodRx discount pricing to commercially insured plan members filling various generic prescriptions that are often prescribed at in-network pharmacies.
About GoodRx
GoodRx is a leading resource for healthcare savings and information that makes healthcare affordable and convenient for all Americans. The company offer consumers free access to transparent and lower prices for brand and generic medications, affordable and convenient medical provider consultations via telehealth and comprehensive healthcare research and information.
More on Caremark Cost SaverTM.
Through the new program, qualifying members of CVS Caremark will automatically have access to GoodRx's prescription pricing, enabling them to spend less for generic prescriptions when cheaper prices are offered while still having a smooth experience at the pharmacy counter.
Members will continue to gain from CVS Caremark's stringent drug safety review, which includes thousands of health and safety tests that can notify patients of any harmful drug interactions.
The payment will automatically be added to the deductible and out-of-pocket maximums for plan participants. The only thing plan participants need to do is use their current benefit card at their favourite in-network pharmacy. The plan member doesn't have to do anything.
Benefits of Caremark Cost SaverTM
With the help of this cooperative prescription discount solution, the company is able to dynamically shop for the lowest price on its clients' behalf. CVS Caremark clients and the members of their plans are the focus of daily efforts to give a more reasonable drug benefit. Caremark Cost Saver will make it more affordable for patients to take their medications as prescribed by reducing the out-of-pocket costs for the members of company’s clients.
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Through this program, customers can save money on their medications by using their pharmacy benefit and GoodRx immediately at the counter, giving them the assurance that they are always paying the lowest price. For millions of Americans that CVS Caremark serves, this alliance has the potential to significantly improve their lives.
Industry Prospects
Per a report by Fortune Business Insights, the global prescription drugs market size stood at $811.00 billion in 2018 and is projected to reach $1,562.15 billion by 2026 at a CAGR of 8.9%. In the prescription drugs market, the increasing R&D investments by prominent companies for the development of new drugs is one of the key trend fuelling the market.
Recent Developments
In June 2023, CVS Health entered into a 12-year agreement with Constellation (CEG) effective from April 2025. Through the deal, CVS will purchase zero-emission, renewable energy equivalent to the annual electricity use of its 147 CVS Health locations throughout Michigan. CVS Health will use the Constellation Offsite Renewables (CORe) product to facilitate its renewable energy transaction. This agreement will help the company reduce its carbon footprint by nearly 17,000 metric tons each year.
In May 2023, CVS Health completed its acquisition of Oak Street Health in an all-cash transaction. The acquisition will broaden CVS Health’s value-based primary care platform and improve patient outcomes and reduce costs, particularly in underserved communities.
Price Performance
In the past one year, CVS’ shares have declined 22% compared with the industry’s fall of 21.5%.
Zacks Rank and Key Picks
CVS Health currently carries a Zacks Rank #3 (Hold).
Some other better-ranked stocks in the broader medical space are Hologic, Inc. HOLX, Health Equity, Inc. HQY and Boston Scientific Corporation BSX.
Hologic, carrying a Zacks Rank #2 at present, has an estimated growth rate of 5.1% for fiscal 2024. HOLX’s earnings surpassed estimates in all the trailing four quarters, the average being 27.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hologic has gained 13.9% compared with the industry’s 16.8% rise in the past year.
HealthEquity, sporting a Zacks Rank #1 at present, has an estimated long-term growth rate of 22%. HQY’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 9.1%.
HealthEquity has gained 13.7% against the industry’s 12.6% decline in the past year.
Boston Scientific, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.5%. BSX’s earnings surpassed estimates in two of the trailing four quarters and missed in the other two, the average surprise being 1.9%.
Boston Scientific has gained 42.9% against the industry’s 19.2% decline in the past year.
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