Gary Mangiofico Explores CVS's CostVantage Strategy in Managed Healthcare Executive

The recent article by Gary Mangiofico, published in the Managed Healthcare Executive scrutinizes CVS Health's bold move with its CostVantage model, aiming to revamp its payment practices for dispensed medications. Spearheaded by CVS Caremark, the company's pharmacy benefit manager, the approach integrates drug costs with a set markup and a fee for pharmacy services, promising increased transparency and pricing clarity in an industry plagued by obscurity. 

However, while CVS asserts these changes will enhance market alignment, concerns linger regarding the potential impact on drug prices, especially given the dominance of PBMs like CVS Caremark in the market. 

Pepperdine Graziadio faculty member, Gary Mangiofico, highlights the complex landscape of PBMs and the potential for CVS' strategy to prompt a broader reevaluation of healthcare practices. As the industry grapples with pricing disparities and regulatory pressures, innovative solutions that prioritize patient care may emerge as the true game-changers.

Read the full article here.