“Your question as it relates to Medicare and Medicaid, we’re actually working for 1/1/26 to move the rest of our book onto a CostVantage-like model.”

In context

“e closely align to our underlying cost of our business and the value that we create as a local community pharmacy for the tens of millions of patients that we serve. Secondly, when you think about pharmacy reimbursement, there was a lot of cross-subsidization across brands and generics, and this allows us to ensure more stable pharmacy margins and a more durable process as you think about what we do inside the pharmacy supply chain, which is essentially serving the patients at the counter for a more predictable margin for every script that we dispense. Lastly, it creates the path for transparency for PBMs to provide that transparency in their drug pricing as well. In our conversations with payors, I’m excited to say that we got this across the finish line in 100% of our commercial market. Your question as it relates to Medicare and Medicaid, we’re actually working for 1/1/26 to move the rest of our book onto a CostVantage-like model. Our initial results from CostVantage and the industry leading cost of goods that we have, PBMs and payors will benefit from this, and we’re trending toward delivering more than $100 million of annualized purchasing improvement across all of our generics to the PBM and payor customers under CVS CostVantage contracts, and as we continue to improve cost of goods, we pass that through CostVantage to our customers. As we continue to move forward, we’re excited about building this with our payors to create more clinical models and clinical solutions at the counter, where we can leverage the 30,000-plus pharmacists we have serving patients day-in and day-out. Operator: Thank you. We have our final question on the line from Elizabeth Anderson with Evercore. Please go ahead. Elizabeth Anderson: Hi”