CVS Caremark Awarded Federal Employee Program Contract

By Kate H. Gamble, Senior Editor

CVS Caremark Corporation was recently awarded a 3-year contract to provide integrated pharmacy benefit services for the Blue Cross and Blue Shield Government-wide Service Benefit Plan, also known as the Federal Employee Program (FEP). The Company will continue to provide FEP’s clinical programs and retail pharmacy benefit management services, and will also provide mail order pharmacy services and specialty pharmacy services to the more than 5 million federal employees, retirees and dependents covered under FEP.

CVS Caremark has been administering FEP’s retail pharmacy benefit management program since 1993, was slated to extend coverage through the end of 2011 as per the most recent contract. Under the new agreement, which runs through 2014, CVS Caremark will continue to provide retail pharmacy benefit management services, including network contracting and management of a comprehensive suite of highly-customized clinical programs, and also provide mail order and specialty pharmacy services.

“We are very gratified that FEP has recognized that CVS Caremark’s unique integrated model for pharmacy care provides the best overall value and offers their plan members innovative, cost-effective pharmacy benefit management services that improve health outcomes,” said Larry J. Merlo, president and CEO of CVS Caremark, in a statement.

“FEP is a highly-valued client and we are committed to continuing to deliver the same high level of service and patient satisfaction that we have provided to FEP’s federal employees, retirees and their families for many years,” added Per Lofberg, president of CVS Caremark’s pharmacy benefit management business.