CVS And Walmart Extend PBM, Managed Medicaid Agreement
Walmart Inc (NYSE: WMT) announced Friday a multi-year agreement to remain in the CVS Health Corp (NYSE: CVS) Caremark pharmacy benefit management program and Managed Medicaid retail pharmacy network.
The extension ensures ongoing engagement between the companies, who maintain other agreements around the CVS Caremark Medicare Part D pharmacy network. Walmart’s Sam’s Club also participates in the Caremark networks.
Why It’s Important
CVS management said the renewed partnership “provides enhanced network stability” to its clients. Walmart’s participation keeps the network at 68,000 pharmacies.
On Walmart’s end, the deal builds on recent affordable healthcare initiatives including the $4 generic drug program.
"We are pleased to have reached fair and equitable terms with CVS Caremark that are in the best interest of our customers, and we are glad our CVS Caremark customers will be able to continue saving money and living better," Sean Slovenski, senior vice president of Walmart Health and Wellness, said in a press release.
What’s Next
The firms have not yet disclosed the financial terms of the contract.
At time of publication, Walmart traded up marginally at $97.40, while CVS traded up 2.5 percent at $64.95.
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Photo credit: Ildar Sagdejev (Specious) - Own work, GFDL, via Wikimedia Commons
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