Health Insurance Daily

Pharmacy Giants Combine

CVS Corp. and Caremark Rx yesterday announced a merger agreement, combining the retail giant with one of the nation's largest pharmacy benefit managers. The combined business is expected to fill or manage over one billion prescriptions per year. The new company will be called CVS/Caremark Corp. and headquartered in Woonsocket, R.I.

Employers that use a PBM may want to closely examine that relationship. Sean Brandle, head of the pharmacy consulting group at The Segal Company, says, "The proposed merger of CVS and Caremark Rx signals a further shift in who controls the prescription drug market in the United States." It also brings into question the independence of PBMs and their role vis-à-vis retail pharmacy chains and other players in the market, he adds.

Mac Crawford, CEO of Caremark, comments, "This merger creates a significant platform to address the needs of both payers and consumers by providing high-quality, cost-effective services in a manner that is convenient, flexible and easy for the consumer to navigate and understand."

Tom Ryan, president of CVS, remarks, "CVS and Caremark will help manage the costs and complexities of the U.S. health care system, offering unparalleled access and driving superior health care outcomes, enhancing value for employers, health plans and consumers."

Article provided by BenefitNews 11-03-06.

posted by Mike @ 9:50 AM