Pills although so far the PBM hasonly dropped five drugs, targets could appear on the backs of otherhighly expensive drugs as reviews of products continues. (Photo:Getty)

Drugmakers, beware: if you boost the price on your products toomuch, a pharmacy benefit manager may just kick it off its list ofapproved formularies as the default option for doctors toprescribe.

That's what CVS Caremark has started to do, according toFierce Healthcare, to save its PBM clientsbucks. In fact, CVS Caremark estimates that it has saved its PBM clients anaverage of $15 per 30-day supply on drugs, with clients on its newformulary model paying an average of $88.30 for a 30-day drugsupply, compared to $102.58 for other formulary designs.

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Marlene Satter

Marlene Y. Satter has worked in and written about the financial industry for decades.