CVS Caremark and GoodRx team up to trim drug costs for millions

CVS Caremark, one of the nation's largest pharmacy benefit managers, recently announced a new partnership with the discount drug service GoodRx, aiming to lower out-of-pocket prescription costs for millions.

CVS Caremark provides prescription drug plans for over 100 million people. Before the deal, Caremark clients had to choose between using GoodRx discounts — which finds the lowest discounted drug prices at nearby pharmacies— and their insurance benefits when purchasing a prescription. Under this new plan, called Caremark Cost Saver, members will have access to both, with discounted costs now counting towards deductibles and out-of-pocket thresholds.

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"Patients don't have to choose between using their pharmacy benefit or using GoodRx to save on their prescription," Scott Wagner, interim CEO of GoodRx, said in a release. "Now they can do both right at the counter." 

 Last year, GoodRx entered into a similar partnership with Cigna's ExpressScripts, the largest pharmacy benefit manager in the U.S. The launch of this latest partnership with CVS signals an additional push to integrate benefits. The company is also currently looking to create partnerships with Medicare, according to GoodRx's strategic program development officer, Cynthia Meiners.

Despite these efforts, prescription costs remain sky-high for patients. More than 70% of GoodRx users — likely on the hunt for an additional discount —  were already insured according to a company report, and the average American over 65 pays an annual average of $721 for prescription drugs, according to research from Georgetown University. 

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In a 2022 earnings call, GoodRx's leaders said that their blossoming partnerships with PBMs have been a driver of the company's revenue and in turn, have increased traffic for several top branded medications. In the wake of the Cigna partnership, the additional team-up with CVS gives GoodRx access to 70% of the commercially insured market;  CVS Health, the owner of Caremark, also owns the health insurance company Aetna. 

However, Meiners calls the partnership a "win-win-win" for consumers, PBMs and GoodRx. 

"The market has bifurcated as more and more people go into the discount market," says Meiners. "So there's always the desire to try to reintegrate it and bring those prescriptions back together."