|CVS Announces It Will No Longer Participate in Midwest Health Plan; Company Takes a Stand against Plan's Unreasonably Low Reimbursement Rates|
WOONSOCKET, R.I.--(BUSINESS WIRE)--July 18, 2006--CVS/pharmacy (NYSE: CVS), America's largest retail pharmacy, announced today that it will no longer participate in the Midwest Health Plan pharmacy network, effective August 16, 2006. As of that date, CVS will stop filling prescriptions for members of Midwest Health Plan due to the Plan's inadequate pharmacy reimbursement rates.
Midwest Health Plan is located in Dearborn, Michigan and provides services in Macomb, Oakland, Washtenaw and Wayne counties for more than 50,000 members.
CVS has been in discussions with Midwest Health Plan's pharmacy benefit management company, 4-D, for several months regarding the Plan's unacceptable reimbursement rates. CVS management worked diligently to propose reimbursement solutions that take into account the costs associated with providing patients with quality pharmacy services.
"While we sincerely regret any disruption this may cause our customers, we feel strongly that we cannot sacrifice the quality of our pharmacy services to meet the unreasonably low reimbursement rates implemented for this plan," said Tom Morrison, Vice President of Managed Care at CVS/pharmacy. "As much as we have tried to negotiate a reasonable solution, it has reached the point with the Midwest Health Plan that continuing participation no longer makes economic sense."
CVS is America's largest retail pharmacy, operating more than 6,100 retail and specialty pharmacy stores in 44 states and the District of Columbia. With more than 40 years of dynamic growth in the retail pharmacy industry, CVS is committed to being the easiest pharmacy retailer for customers to use. CVS has created innovative approaches to serve the healthcare needs of all customers through its CVS/pharmacy stores; its online pharmacy, CVS.com; and its pharmacy benefit management, mail order and specialty pharmacy subsidiary, PharmaCare. General information about CVS is available through the Investor Relations portion of the Company's website, at http://investor.cvs.com, as well as through the pressroom portion of the Company's website, at www.cvs.com/pressroom.
CONTACT: CVS Media: Mike DeAngelis, 401-770-2645 or Investor Relations: Nancy R. Christal, 914-722-4704 SOURCE: CVS