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Reinventing Pharmacy: The Price Increase for Caremark Could Be a Price Decrease for Manufacturers

Executive Summary

The battle between CVS and Express Scripts for ownership of Caremark has made little impact on drug-company executives. But there is an important implication for pricing in the Medicare Part D world: CVS wants to use Caremark to help it get higher payments for providing pharmacy services. But in the zero-sum game of reimbursement, any additional profits for chains will likely come from reduced prices on drugs.

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