Skip to Main Content
Contribute Try STAT+ Today

In a bid to dampen rising drug costs, CVS Caremark plans to allow its clients — such as health plans and employers — to exclude from their formularies any new medicine that has a higher price than a particular benchmark for determining value. The pharmacy benefit manager will set a threshold of $100,000 per QALY, or quality-of-life years, a barometer that measures both the quantity and quality of life generated by providing a treatment or some other health care intervention. The move, which begins Jan. 1, comes as PBMs are under pressure to demonstrate their own value at a time of rising drug prices. We spoke with Dr. Troyen Brennan, an executive vice president and chief medical officer at CVS Health (CVS), the parent company, about the implications. This is an edited version of our conversation.

Pharmalot: Why take this approach and why now?

Unlock this article by subscribing to STAT+ and enjoy your first 30 days free!


What is it?

STAT+ is STAT's premium subscription service for in-depth biotech, pharma, policy, and life science coverage and analysis. Our award-winning team covers news on Wall Street, policy developments in Washington, early science breakthroughs and clinical trial results, and health care disruption in Silicon Valley and beyond.

What's included?

  • Daily reporting and analysis
  • The most comprehensive industry coverage from a powerhouse team of reporters
  • Subscriber-only newsletters
  • Daily newsletters to brief you on the most important industry news of the day
  • STAT+ Conversations
  • Weekly opportunities to engage with our reporters and leading industry experts in live video conversations
  • Exclusive industry events
  • Premium access to subscriber-only networking events around the country
  • The best reporters in the industry
  • The most trusted and well-connected newsroom in the health care industry
  • And much more
  • Exclusive interviews with industry leaders, profiles, and premium tools, like our CRISPR Trackr.
  • This is nothing more than a Public Relations stunt. One more bit of corporate propaganda, where there will most certainly insurance and medical industry input. Here on Post Fact America, we should be looking at this kind of corporate deception, and read between the lines.

Comments are closed.