CVS Caremark to Pay $1.25B for Universal American Medicare Part D Business
CVS Caremark said it will buy the Medicare Part D business of Rye Brook, NY-based Universal American for $1.25 billion in a deal that will more than double the size of CVS Caremark's Medicare Part D program.
Universal American's Part D business now serves 1.9 million Medicare Prescription Drug Plan members, while CVS Caremark serves 1.2 million Medicare PDP members. The membership does not include 2011 auto assignment or the results of the Annual Enrollment Period which ended Dec. 31.
"Today's transaction furthers CVS Caremark's position as a significant player in one of the nation's fastest growing segments of the Pharmacy Benefit Management industry. A growing portion of the country's population will receive their prescription drug coverage under Medicare plans, driven both by age demographics and the anticipated shift of retirees from employer-based coverage to Medicare that will likely result from health care reform," said Per Lofberg, president of Caremark Pharmacy Services, in a statement.
"The Medicare Part D program is integral to CVS Caremark's long-term growth strategy. We believe that bringing together these two businesses will strengthen our competitive offerings, enabling us to provide Medicare beneficiaries with expanded products and services and lower the cost of pharmacy care," Lofberg said.
When the deal is finalized Woonsocket, RI-based CVS Caremark will be one of the nation's largest providers of prescription drug services for Medicare Part D beneficiaries.
John Commins is a senior editor with HealthLeaders Media.
- Antibiotic Overuse a 'Huge Threat' to Patient Safety, Says CDC
- CFO Exchange: Smartphones Poised to Disrupt Healthcare, Says Topol
- Consumerism Drives Healthcare Branding, Rebranding Efforts
- 3 Traits Personality Assessments Can't Reveal
- PA Ranks See 'Phenomenal Growth,' Lack of Diversity
- CHS Hacked, 4.5M Patient Records Compromised
- CFO Exchange: Healthcare Leaders Share 5 Innovative Ideas
- Business Roundup: M&A Activity Down Slightly in First Half of 2014
- Large Employers Trimming Healthcare Spending
- CNO on Hospital Redesign: 'You Can't Over-Communicate'