Retail News Breaks Archives
CVS Caremark to resume Silverscript Part D enrollment
December 23rd, 2013
WOONSOCKET, R.I. – The Centers for Medicare & Medicaid Services (CMS) lifted sanctions imposed against CVS Caremark Corp.'s SilverScript Medicare Part D prescription drug plan (PDP).
CVS said Friday that the action by CMS has allowed the company to resume marketing of SilverScript products and begin enrolling beneficiaries.
"We have worked hard to implement improvements to address the enrollment processing issues that occurred in early 2013 and are committed to providing our members with quality service and support," Jon Roberts, president of CVS Caremark's pharmacy benefit management business, said in a statement.
At the CVS Analyst Day event last week, Roberts said the company sees significant opportunity to grow its Medicare Part D business over the long term.
"The Medicare Part D market remains a very important part of our growth strategy," he told investors at the event.
With 15 million people aging into Medicare by 2020, Part D spending is expected to grow at an 8.6% compounded annual rate, according to Roberts.
"Individual PDPs will be fueling this growth," he said, adding that expansion of employer group waiver plans (EGWPs) will continue through 2015, at which point there will be movement from such plans into the individual market.
CVS Caremark is the No. 3 player in the Part D market, covering 6.8 million lives through its PDP and health plan clients as of October 2013. It expected as of January to serve 4.2 million people with SilverScript products, as it brings on new EGWP lives offset by monthly attrition and expected attrition from open enrollment.