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CVS Caremark to wrap up Universal American deal
April 28th, 2011
WOONSOCKET, R.I. – CVS Caremark Corp. is set to close its acquisition of the Medicare Part D business of Universal American, a leading Medicare prescription drug plan sponsor.
Plans call for the $1.25 billion deal to be completed on April 29, CVS Caremark said Thursday. The drug store chain and pharmacy benefit management (PBM) company announced the Universal American acquisition at the end of last year.
With the finalization of the transaction, CVS Caremark and Universal American will begin working to integrate the two businesses' Medicare prescription drug plans (PDPs). CVS Caremark said the move will more than double the size of its Medicare Part D program.
Given the nation's aging demographics and the trend to transition retiree coverage to Medicare funding, prescription drug benefit coverage via Medicare stands to be a huge growth segment in the PBM market, CVS Caremark noted.
"This transaction will make CVS Caremark a top provider of service in Medicare Part D, one of the nation's fastest-growing health care segments," Per Lofberg, president of CVS Caremark Pharmacy Services, said in a statement. "This acquisition will strengthen our business and allow us to expand products and services to Medicare beneficiaries while we work to lower the cost of pharmacy care."