NEW YORK (AP) — Pharmacy benefits manager Medco Health Solutions Inc. said Friday that after this year, it will lose a contract that brought it about $3 billion in annual revenue.
The contract, which Medco had handled since 2008, will go to rival CVS Caremark Corp. CVS Caremark shares rose as much as 3.5 percent in morning trading while Medco stock suffered the largest decline of any company on the S&P 500, tumbling more than 10 percent.
Medco said Blue Cross Blue Shield will not renew a contract that saw Medco handle mail order and specialty drug benefits for the Federal Employees Health Benefits Program, which provides health insurance to federal government employees, retirees, and their families. Blue Cross' decision not to renew the deal will not affect CVS or Medco's results in 2011.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
