Retail News Breaks Archives
CVS Caremark signs long-term PBM pact with Aetna
July 27th, 2010
WOONSOCKET, R.I. – CVS Caremark Corp. has entered into a 12-year contract to provide pharmacy benefit management services to customers and members of insurer Aetna.
Under the deal announced Tuesday evening, CVS Caremark will serve about 9.7 million Aetna PBM members and administer roughly $9.5 billion in annual drug spend in administering Aetna's retail pharmacy network and managing its pharmacy customer and member services. In addition, CVS Caremark will manage purchasing, inventory management and prescription fulfillment for Aetna's mail-order and specialty pharmacy operations.
Aetna will retain its PBM and manage clinical programs, protocols and oversight of its pharmacy benefits business, the companies said.
As part of the agreement, Aetna will transfer to CVS Caremark about 800 PBM employees who will work in support of the transferred functions. Aetna will retain approximately 1,000 PBM employees. All regulatory approvals are expected to be obtained before the expected service commencement date of Jan. 1, 2011, the two companies reported.
CVS Caremark and Aetna said they aim to deliver the following:
• Enhanced clinical capabilities, with best-in-class integrated clinical programs focused on promoting medication adherence for members to foster better health outcomes, reduce overall medical costs and optimize care management.
• Improved pricing and products, resulting in a better value for Aetna customers and members through total cost and quality management with superior care, enhanced flexibility, innovative products and lower drug prices.
• Improved customer service and member experience via innovative technology and consumer-facing service capabilities through rapid integration of pharmacy data into care management systems.
"We are very pleased to be working with Aetna and believe our integrated approach and multichannel platform will help Aetna deliver exceptional results for its clients and members," CVS Caremark chairman and chief executive officer Tom Ryan said in a statement. "With our shared vision of pharmacy care, CVS Caremark and Aetna will work together to deliver quality outcomes with lower overall health care costs. Aetna's selection of CVS Caremark is a testament to our integrated pharmacy care model as well as our reputation for service excellence."
According to Aetna chairman and CEO Ronald Williams, the pact with CVS Caremark enhances Aetna's value proposition in the marketplace. "Through this strategic agreement, we retain our PBM and our ability to integrate medical care with clinical and pharmacy programs and actionable data," Williams stated. "We will add CVS Caremark's best-in-class clinical capabilities and broad market reach, enabling us to deliver better drug discounts and improved pricing and service to our customers."
Medication adherence will be one of the core benefits of CVS Caremark's services to Aetna clients and members, noted Troy Brennan, chief medical officer and executive vice president at the Woonsocket, R.I.-based drug store chain and PBM company. "Together, CVS Caremark and Aetna have an exciting opportunity to generate meaningful improvements in patient outcomes," Brennan commented.
Added Lonny Reisman, Aetna senior vice president and chief medical officer, "Under this agreement, members will be provided with customized information about drug safety, evidence-based protocols and relevant clinical programs at the point of service."