Wendy future of retail top

BCBS specialty Rx FEP contract to shift from CVS to Prime

Print Friendly, PDF & Email

NEW YORK — Next year, the specialty pharmacy services contract for the Blue Cross and Blue Shield Federal Employee Program (FEP) is slated to pass from CVS Health to Prime Therapeutics LLC.

pharmacy_drugs_pills_photoCVS said its specialty pharmacy contract with BCBS FEP will terminate at the end of 2017. Under separate agreements that run through 2018, CVS will continue to provide integrated pharmacy benefit management services, including mail service pharmacy and clinical care programs, to FEP’s more than 5.4 million federal employees, retirees and dependents.

The loss of the specialty pharmacy contract, expected to generate revenue of about $2.8 billion in 2017, isn’t expected to have a material impact on operating profit in 2018, CVS noted.

Meanwhile, Prime Therapeutics, a PBM owned by Blue Cross and Blue Shield companies, said it has been selected to manage the BCBS specialty pharmacy benefit for FEP under a three-year pact that goes into effect on Jan. 1, 2018. The program covers 5.4 million federal employees, retirees and their families.

Prime will process claims and provide clinical support for FEP members, who fill an estimated 400,000 specialty prescriptions each year. The PBM said specialty drugs account for $5 billion in annual FEP spending on prescription medications.

The Blue Cross Blue Shield Association manages the FEP, also known as the Blue Cross and Blue Shield Service Benefit Plan. The 36 individually licensed health plans of the association are the primary points of contact for FEP members.

Prime serves more than 20 million members nationally through nonprofit BCBS Plans in 17 states, employer groups and government programs. On Monday, Prime and Walgreens launched a new company, called AllianceRx Walgreens Prime, that combines their central specialty pharmacy and mail service businesses. The joint venture stems from a long-term alliance that Prime and Walgreens announced in late August.


ECRM_06-01-22


Comments are closed.

PP_1170x120_10-25-21