• Hypertrophic Cardiomyopathy (HCM)
  • Vaccines: 2023 Year in Review
  • Eyecare
  • Urothelial Carcinoma
  • Women's Health
  • Hemophilia
  • Heart Failure
  • Vaccines
  • Neonatal Care
  • NSCLC
  • Type II Inflammation
  • Substance Use Disorder
  • Gene Therapy
  • Lung Cancer
  • Spinal Muscular Atrophy
  • HIV
  • Post-Acute Care
  • Liver Disease
  • Biologics
  • Asthma
  • Atrial Fibrillation
  • RSV
  • COVID-19
  • Cardiovascular Diseases
  • Prescription Digital Therapeutics
  • Reproductive Health
  • The Improving Patient Access Podcast
  • Blood Cancer
  • Ulcerative Colitis
  • Respiratory Conditions
  • Multiple Sclerosis
  • Digital Health
  • Population Health
  • Sleep Disorders
  • Biosimilars
  • Plaque Psoriasis
  • Leukemia and Lymphoma
  • Oncology
  • Pediatrics
  • Urology
  • Obstetrics-Gynecology & Women's Health
  • Opioids
  • Solid Tumors
  • Autoimmune Diseases
  • Dermatology
  • Diabetes
  • Mental Health

Universal American to sell Medicare Prescription Drug business to CVS Caremark

Article

CVS Caremark Corporation, the second-largest drugstore chain in the U.S., plans to acquire the Medicare Prescription Drug business of Universal American for about $1.25 billion.

CVS Caremark Corporation, the second-largest drugstore chain in the U.S., plans to acquire the Medicare Prescription Drug business of Universal American for about $1.25 billion.

CVS Caremark will acquire all of the outstanding stock of Universal American and distribute the shares of a newly formed public company to Universal American shareholders. The new company will own all other operations of Universal American, including its Medicare Advantage and Traditional Insurance businesses.

According to the Los Angeles Times, the size of CVS Caremark's business that provides prescription drug coverage under the Medicare Part D program will more than double because of the deal.

Medco Health Solutions, Inc.'s Medicare Part D prescription benefits management agreement with MemberHealth, LLC, a subsidiary of Universal American, has been terminated as a result of the CVS Caremark acquisition announcement. Medco provides pharmacy benefit management services to beneficiaries of various Medicare plans that are under contract with the Centers for Medicare and Medicaid Services.  

"Universal American will now focus its energies on overcoming our regulatory challenges and building momentum in the Medicare Advantage business to take advantage of our Healthy Collaboration approach to healthcare," said Richard Barasch, chairman and CEO of Universal American, in a press statement.

The transaction is expected to close by the end of the second quarter of 2011 and is subject to customary closing conditions.

Related Videos
Video 11 - "Closing Current Gaps within Fertility Benefits and Care"
Video 10 - "Shaping Fertility Coverage: Access, Costs & Medical Needs"
Video 9 - "Denial of Coverage in Fertility Care"
Video 8 - "Risks of Miscarriage and Multiple Births Associated with Fertility Care"
Video 7 - "Fertility Preservation: Egg Freezing Versus Embryo Freezing"
Video 6 - "Family Building Costs, Barriers, and Dropout Rates Associated with Fertility Care"
Video 5 - "Closing Payer Gaps and Improving Fertility Care Access"
Video 4 - "Increasing Employer Coverage and Maximizing Fertility Benefits "
Video 5 - "Relevance of NUTURE Study Findings for Patients, Payers, Providers"
Video 3 - "Improving IVF Success Rates & Utilizing AI in Fertility Health Care"
Related Content
© 2024 MJH Life Sciences

All rights reserved.