The pharmacy channel is currently constrained by complex, non-transparent pharmacy reimbursement models, leading to inequity for stakeholders. Prevailing models have led to reduced pharmacy provider profitability, lack of transparency, highly variable consumer costs, the rise of new channel partners, and cross-subsidization between product types. In addition, recent events have started to bring more scrutiny to pricing tactics. This paper presents a framework and process when considering adoption of a cost-plus pricing methodology. We discuss:

• Historical perspective on the challenges with common reimbursement price benchmarks
• Existing cost-plus solutions
• Guiding principles for market-wide equitable reimbursement