CVS Caremark's Proposed Acquisition of the Community CCRx Plan

CVS Caremark’s purchase of Universal American’s (UA) Medicare drug business (including the Community CCRx Plan) was an extraordinary move that no one saw coming; not its rivals, and certainly not NCPA.

• NCPA is actively and diligently exploring all options. Protecting the interests of Main Street independent pharmacies and their patients is NCPA’s sole goal.
• This proposed transaction involves complex legal, business and other issues – all of which NCPA is currently working through as quickly as possible. NCPA members and supporters will be kept up-to-date as we learn more information.
• CVS Caremark said in writing that it intends to honor UA’s commitments to independents with respect to plan design (including no mail order component) and Mirixa MTM services through at least the end of 2012.
• NCPA was blindsided by the CVS/UA deal, like everyone else. The trade association and each and every member sit in the exact same position on multiple levels regarding financial, business and related issues. ? NCPA only recently obtained a copy of the extremely complex merger agreement between CVS and Universal, and will be examining all available options to protect and advance community pharmacies and their patients as we proceed.
• MemberHealth’s agreement with Medco to provide claims processing will not terminate until December 31, 2011.
• There seems to be some confusion over NCPA’s role and its legal rights under the collaboration with the Community CCRx Plan. After enactment of the Medicare Part D law (which NCPA opposed due to its heavy reliance on big PBMs) the Association formed a collaborative arrangement with the privately held PBM, MemberHealth, on a plan that aligned with the interests of patients, payors, and pharmacies. MemberHealth sponsored and ran the plan, while NCPA had input on the plan design and ultimately endorsed it due to its pro-pharmacist, pro-patient policies like face-to-face MTM, appropriate generic dispensation incentives and no mail order. CCRx’s success attracted suitors. First, Universal American purchased Member Health and now we’ve heard the shocking news of CVS’ acquisition of Universal American’s Part D plans.
• In sum, this is one of the biggest challenges that we have faced as an industry and only together can the power of all independents be harnessed. Working together, independent pharmacies can become the cornerstone of today's and tomorrow's patient-focused, health care paradigm.