CVS Health plans to overhaul its system for pricing prescription drugs, a shake-up to the traditional pharmacy benefit manager model.

Why it matters: Critics say PBMs are middle players that obscure the true costs of acquiring and dispensing drugs, often driving up costs, Axios' Tina Reed writes.

Driving the news: CVS is ditching the complex formulas typically used by PBMs to set the prices of the drugs it sells, shifting to a simpler model often called "cost-plus" pricing.

• Starting in 2025, the pharmacy chain will be paid for drugs based on how much it pays for them, plus a markup and set fee.

The impact: CVS' move could shift the retail pharmacy market given its outsized influence, with more than 9,000 locations and the nation's largest PBM, CVS Caremark.

• For consumers, the impact of the change will likely be mixed. The prices of some drugs will fall, but could rise for others, executives told the Wall Street Journal.

What they're saying: "At a minimum, the goal for CVS and others should be to shine a light on the way drugs are priced," Nick Fabrizio, senior lecturer in health policy at Cornell University, says.

Between the lines: The cost-plus model is similar to that being used by Mark Cuban's Cost Plus Drugs, a direct-to-consumer platform.

• And Cigna's Express Scripts, the second-largest PBM in the nation, said last month it would offer a new pharmacy network option with cost-plus pricing.

The bottom line: The changes come as PBMs have drawn scrutiny from policymakers and as employers, health plans and health systems have increasingly been pushing back against contracts.

When people want to know what ChatGPT is, they're not asking ChatGPT — they're going to a more traditional source: Wikipedia.

• An article describing the popular AI system was the most popular topic on the online encyclopedia's English-language site in 2023, the Wikimedia Foundation reported today.

Driving the news: Each year, the Wikimedia Foundation releases a list of the most-viewed articles, Axios' Eleanor Hawkins and Nathan write.

The intrigue: While the "Barbie" movie won the Barbenheimer battle at the box office, it received 57% fewer page views than "Oppenheimer."

🍻 Spirits distributor Diageo is seeking to divest the rest of its beer portfolio aside from its flagship Guinness brand. (Axios Pro scoop)

🛢️ The FTC is investigating the proposed Exxon-Pioneer merger. (WSJ)

China's credit outlook is souring, according to Moody's Investors Service.

Why it matters: The health of the world's second-largest economy is showing cracks after decades of rapid growth, Nathan writes.

Driving the news: The ratings agency lowered its outlook on China's government credit ratings from stable to negative.

• The long-term rating on the country's sovereign bonds remains for now at A1, which is four levels below AAA.
• Concerns include mounting local government debt, "weaker demographics," economic growth concerns and a property crisis, Moody's said.

Yes, but: Moody's noted that China retains "high shock-absorption capacity" — meaning it can use its vast resources to make some of its pain go away.

• "And while growth will be lower than previously expected, it will remain robust compared with other A-rated peers," Moody's said.

Santa has a handy new helper to get his writing chores out of the way — AI.

What's happening: Austin, Texas-based creative agency Hunt, Gather is launching an AI platform so parents can order up a letter from the big man, Axios Austin co-author Asher Price writes.

How it works: Through Dec. 17, you can visit Santa's Magical Mailroom, an online portal created by Hunt, Gather's design and engineering team, to share details about a special person's year through a short questionnaire.

• An AI-powered machine then generates a personalized letter in a font that appears handwritten. It's then printed and mailed, signed by Santa himself, and delivered with an optional spritz of peppermint essential oil.

The cost: $20 with proceeds going to Girls Who Code.

"I can certainly see that it's likely that we could end up with negative internet net adds inside of Q4."