Market check pricing improvements for our CVS Caremark Master Contract have been completed. These improvements will automatically take effect January 1, 2024. Market check pricing enhancements are made possible due to changes in the prescription drug marketplace and the membership growth of the Cooperative.
For January 1, 2024, the pricing improvement over 2023 will yield an additional 4.1% savings for the average member group. 3.4% of the improvement was already scheduled to take effect as part of the 2022 request for proposal (RFP) negotiations. Market check negotiations yielded an additional improvement of .7%. These savings will have an impact on offsetting trend and lowering prescription drug costs for our members.
While a significant amount of the year-over-year improvement in contract value comes from higher rebate guarantees (73%), there are changes on the horizon for rebates. For more information, read our second special announcement here. Improvements in discount guarantees make up the remainder of the improved contract value.
Acknowledgement and enhancement of National CooperativeRx plan exclusions were also included as part of this process. The additional exclusions fall under the high cost, low value medication bucket we exclude to drive higher value care. There is a nominal amount of additional savings because of this additional clinical management.
National CooperativeRx is providing improvements to our membership without any additional commitment to the pharmacy benefit manager (PBM). The annual market check process is allowed under our Master Contract and is in place to keep pricing current. Without this process, members would pay more for prescription drugs and PBM services until their next formal RFP. No action is required on the part of membership to realize these savings.
If you have questions about the market check, or anything else, please contact your National CooperativeRx account representative.