The chain of pharmacies is assembling a network of tobacco free pharmacies that will be able to offer cheaper copays to customers who fill their prescriptions there.
CVS Health has officially announced its new plan to offer reduced copays through a specialized network of pharmacies. The network will be comprised of pharmacies that do not sell tobacco products and will be available to health care providers and employers in exchange for reduced costs to customers who shop in the tobacco free stores.
The decision is reflective of CVS Health’s decision to phase out tobacco products from their stores. The Caremark pharmacy benefit management subsidiary shares contracts with a wide array of pharmacies, including CVS, which allow the company to execute this plan aggressively enough to potentially squeeze competing pharmacies a bit.
Places like Walgreens, Walmart and Rite Aid that all contain pharmacies but still sell tobacco products are likely to be faced not only with stiff competition, but with the costs associated with mitigating the discounts offered to the tobacco free network.
Vice president of corporate communications with CVS Health, Carolyn Castel, said in a statement that the decision to develop this network was the direct result of people asking for a network of this nature once they learned of CVS’ decision to discontinue sales of tobacco products.
At present, the network contains CVS pharmacies as well as Target’s. A large number of independent pharmacies are included and CVS says it is in the process of scouting out further pharmacies to add to the list.
This move is thought to be a unique strategy by many analysts in the field. Their plan essentially reduces the options that customers have, which is thought to help provide better quality care for individuals. By making it cheaper to shop in pharmacies that do not sell tobacco, CVS hopes to encourage more customers to avoid buying tobacco in general.
“We look forward to making this new pharmacy network available to our clients..and providing their plan members with an option to select a tobacco-free environment for their prescription fulfillment needs,” Castel said.
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